Financial Sector & Digitalization

The ECB’s recent rate cut contrasts with the Fed’s recent decision to leave its target rate range unchanged, reflecting the divergent attitudes of the main central banks to inflation, with potential implications for the global economy. Going forward, clear central bank communication remains key to mitigating market volatility and strengthening economic stability in an increasingly complex environment.

Two years since the start of the rate hiking cycle, various factors have shaped the trend in margins, with some clearly positive while others less favourable, raising doubts over the sustainability of current margins. A disaggregation of the rate, volume and funding reconfiguration effects helps to explain the incremental growth in the Spanish banks’ net interest margin relative to their European counterparts.

Institutional changes, such as quotas and evolving social norms, which have promoted gender diversity in boardrooms and at the corporate executive level, are believed to have positively impacted ESG outcomes within firms. Empirical evidence shows that woman directors seem more influential on sustainability issues, while women executives have a stronger impact on gender agendas; nevertheless, preliminary analysis shows that the impact of both groups on these respective areas appears to be limited.
positively impacted ESG outcomes within firms. Empirical evidence shows that woman directors seem more influential on sustainability issues, while women executives have a stronger impact on gender agendas; nevertheless, preliminary analysis shows that the impact of both groups on these respective agendas appears to be limited.