Fitch Ratings Global Banking Conference 2015 Kicks off in London

Fitch Ratings today hosts the first of its flagship annual Global Banking Conferences for 2015 in London. The conferences, continuing in the US and Asia throughout June, will include the latest from Fitch's leading analysts from around the world.

David Weinfurter, Global Head, Financial Institutions, reveals, "At the Global Banking Conferences Fitch is focusing on how the changing regulatory landscape is impacting the banking industry, how the macro-economic environment is impacting bank credit and how Fitch is incorporating these issues into its bank ratings and analysis."

"Negative sovereign rating Outlooks now outnumber positives by two to one, with oil-exporters in particular coming under pressure. In the eurozone, we believe that private and government deleveraging is not yet complete. Despite the region's bond markets making a comeback, ratings have yet to do the same", says Douglas Renwick, Senior Director, Sovereign Group.

Christopher Wolfe, Managing Director, US Financial Institutions, explains, "We are expecting the economic picture to remain benign, with attention mainly on if and when the Federal Reserve raises rates and what this means for the banking sector. While overall loan growth has been subdued, commercial lending growth has been robust and a key area of focus. By now, banks have mostly adapted to what has become a multi-tiered regulatory landscape, with the largest banks subject to the most onerous rules."

"The implementation of the EU's Bank Recovery & Resolution Directive means sovereign support is now unlikely for most EU banks if they fail", says James Longsdon, co-Head, EMEA Financial Institutions. "How banks adapt to resolution strategies expected of them is likely to increasingly influence ratings. Developments in asset quality, capital and earnings will be key rating drivers over the medium term. Here there remain significant variations across the region and the pace of change, while mostly positive, is uneven."