Resources for Basel II Capital Accord (Basel II)

Banks still confident in spite of stressed consumers

Bank profits growth remains resilient– growing in both the investment banking and retail banking sectors in Q407, according to the latest quarterly Ernst & Young bank index findings measured in December 2007. In turn, this has held bank confidence steady, at 98 index points, down slightly from the maximum 100 point level.

Says Emilio Pera (Pictured left), lead Banking Director at Ernst & Young, "Despite all the signs of distressed consumers, including household debt ratios reaching 77.5% of disposable income in the third quarter of 2007, bank profits growth remain strong.

With resilient profits, it is perhaps understandable that nearly all retail banks remain satisfied with current trading conditions."

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