Risk Annual Summit: Bank deleveraging 'might not be cyclical'

Aircraft, shipping and project finance all set to lose out as banks seek to constrain capital consumption, panellists warn

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The current round of bank deleveraging might see lending volumes sink to a permanently lower level, according to panellists at the Risk Annual Summit in London this morning – a trend driven by incoming bank capital rules, with aircraft, shipping and project finance set to suffer the most.

"The deleveraging we see might not be cyclical. In Europe, where credit intermediation is done primarily by banks rather than capital markets, that may not be desirable," warned Barbara Frohn, special adviser

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