Development in the Banking Sector

Here are some recent developments in the banking sector:

Major U.S. Banks Exit Climate Alliance: Citigroup and Bank of America have joined Wells Fargo and Goldman Sachs in exiting the Net-Zero Banking Alliance (NZBA). This move is influenced by pressures from Republican policymakers opposing restrictions on fossil fuel financing. Despite leaving the NZBA, these banks assert their commitment to individual net-zero goals. citeturn0news9

Bank of England’s Stance on ‘Britcoin’: The Bank of England has expressed skepticism about launching a central bank digital currency (CBDC), commonly referred to as “Britcoin.” Concerns include user privacy, technology costs, and potential public misconceptions. A final decision is anticipated in 2025 after a two-year consultation period. citeturn0news12

FTSE 100’s Performance in 2024: The FTSE 100 index has achieved its best performance since 2021, rising nearly 6% through 2024. This growth is attributed to a robust global stock market, with significant contributions from finance stocks like NatWest and Barclays, which saw substantial gains. citeturn0news13

Bank of America Branch Closures on New Year’s Day: Bank of America announced the closure of all its 3,700 branches on New Year’s Day. Other major banks, including Wells Fargo and Citi, also observed closures for the federal holiday. Customers were advised to utilize digital banking tools or ATMs during this period. citeturn0news11

Regulatory Concerns Over Private Credit Growth: The expansion of private credit markets, particularly by non-bank financial institutions, has raised concerns among regulators and central banks. Issues include lack of transparency and potential risks to financial stability. In 2023, lending by these institutions reached $2.1 trillion globally, predominantly in the U.S. citeturn0news10

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