Global Banks Rally; ASX Banks Shine in APAC. But Why?
If economy were a human body, banks would be its circulation system. That is the importance of banking in any economy. Banks, through the credit line, ensure that the economic engine of any geography keeps revving. That is not it, the banks help in the movement of money from surplus avenues to the places where they need it the most: they channelise the deposits and brand them as loans. That said, 2021 has been a year of ups and downs for the banking Industry. While the world has had its share of good and the bad news, banking stocks have steadily rallied in 2021, despite the big tech taking all the limelight. Take this example: the Dow Jones Banks index, which houses most of the Wall Street banks, has rallied by 25.03% on a year-to-date basis. This is despite the fact that the Archegos debacle had caused losses of about US$10 billion to some of the largest banks. But in the larger scheme of things, North America including the US, is not as important as it is perceived, when...
