Categories: FinanceNews

Banks Around The World Face Another Stress Test Next Week

Bitcoiners may want to pay close attention to the major bank stress test which is set to take place next week. All of the central banks in the world will participate in this test, and the outcome is anybody’s guess at this stage. It is possible the majority of banks will continue down the same path of not taking any concrete action as a result of the Brexit.

Another Stress Test For Global Banks

Although very few people expect the banks to take any actions, the

Federal Reserve may be the one big exception to this rule. The way things look right now seem to indicate the Fed will not be able to keep its interest rates on hold for much longer. That is only normal, as the institution wants to avoid previous mistakes of hyping rate hike expectations.

The Brexit outcome seems to have had less of an impact compared to what financial experts had predicted at first. Despite that outlook, the Fed had announced a total of four rate hikes in the year 2016. That prospect had to be corrected, and it is possible there will only one interest increase for the entire year. Then again, it is not a negative change, which is the best anyone can hope for right now.



Commerzbank provided the world with a small quote on what is to be expected:

Related Post

“As the outlook up to mid-September will presumably not be clear enough by then, the next rate hike is more likely to happen in December in our opinion, followed by two further steps in the coming year. Consequently, we predict a somewhat stronger dollar and slightly higher yields in the medium term.”

Other banks around the world are facing bigger problems, though. The Bank of Japan is dealing with very low inflation, and they may be forced to go into monetary easing. However, if a small forecast cut would take place, they may get away with stagnation for the time being. The Japanese Yen needs to be controlled, as its bullish trend is a threat to the country’s economy.

Europe, on the other hand, is a different cookie altogether. The banking stress test results will be released on Friday, and the center of focus will be the Italian banks. It is important to keep in mind this test will only give insights as to what type of solution is needed to solve any lingering problems. The ECB will intervene if necessary, although no specific details are known regarding what they may have planned.

Image credit 1

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Whales Shift Assets As KuCoin Faces Legal Scrutiny

Following the negative news of criminal charges against KuCoin by the US Government, a significant…

10 hours ago

Render Token (RNDR) Gains Momentum Amid AI Market Surge

In a month marked by significant value spikes across various altcoins in the cryptocurrency space,…

11 hours ago

Investors Bullish on Raboo (RABT) as Solana Trading Volume Doubles and Polkadot (DOT) Surges

The bull market is well underway, and the frothiness around Solana and Polkadot is leading…

21 hours ago

BEFE Coin’s Price Skyrockets with a Remarkable 45% Gain in 7 Days

With giants like Bitcoin and Ethereum experiencing value jumps, an unconventional player is trying to…

22 hours ago

Investor Sentiment Skyrockets as Bitgert Coin Surges 70%, Analysts Predict 700% Upswing

Bitgert coin has been on the right track in terms of value movement, with it…

22 hours ago

Immutable (IMX) Gains Momentum With Massive Surge, BTC Recovers to $69K, Algotech Shines Bright With $3M Presale

As the crypto market recovers, Immutable (IMX) will once again gain momentum after a long…

22 hours ago