<\/p>\n
Financial sector most exposed to indirect economic fallout: DBRS.<\/p>\n
With little direct exposure to the region, global banks and asset managers don\u2019t face material impacts from the growing conflict in the Middle East, but will be affected indirectly through macroeconomic channels, says Morningstar DBRS Inc.<\/p>\n
In a report, the rating agency said global banks don\u2019t have any direct exposures to Iran, given that it has been under severe economic sanctions \u2014 and, even their exposures to the broader Middle East region remain limited, and immaterial relative to the banks\u2019 earnings and balance sheets.<\/p>\n
\u201cAs a result, we do not anticipate any near-term credit rating pressures on our global bank credit ratings, despite certain global banks having modest operations in key urban centers in the region,\u201d the report noted.<\/p>\n
However, if the conflict lasts for longer than expected, or escalates significantly, global banks could face higher loan loss provisions, and slower-than-expected global economic growth that eventually leads to weaker credit fundamentals, it suggested.<\/p>\n
As for global asset managers, DBRS said the conflict, and its impact on markets, is \u201cunlikely to have a material impact\u201d on the firms\u2019 underlying credit profiles \u2014 although smaller managers \u201care more vulnerable\u201d to these kinds of shocks.<\/p>\n
\u201cThe Middle East does represent a growth platform for certain managers that we rate, but the exposures are modest, and therefore any disruption to strategic growth initiatives in the region is unlikely to be material,\u201d it noted.<\/p>\n
Despite the limited direct exposure, both banks and asset managers do face possible indirect consequences, \u201cincluding sustained higher oil prices, negative earnings shocks for borrowers in key sectors like shipping, and any other potential event, such as a terrorist attack in a Western nation, that would hurt investor and consumer confidence,\u201d the report said.<\/p>\n
A prolonged oil shock could stoke inflation, resulting in higher interest rates and weighing on consumers, it said.<\/p>\n
\u201cThis could negatively affect credit quality and loan growth,\u201d the report noted.<\/p>\n
At the same time, increased market volatility should boost banks\u2019 trading revenues, it said.<\/p>\n
\u201cHowever, we do expect merger and acquisition and debt and equity underwriting to suffer some delays until geopolitical tensions are reduced,\u201d it added.<\/p>\n
Finally, there\u2019s also a growing risk that \u201cIran could increase its cyberattacks against Western entities, including banks,\u201d it noted.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Financial sector most exposed to indirect economic fallout: DBRS. With little direct exposure to the region, global banks and asset managers don\u2019t face material impacts from the growing conflict in the Middle East, but will be affected indirectly through macroeconomic channels, says Morningstar DBRS Inc. In a report, the rating agency said global banks don\u2019t […]<\/p>\n","protected":false},"author":1,"featured_media":5694,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/Citi-Bank-18.jpg",612,432,false],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/Citi-Bank-18-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/Citi-Bank-18-300x212.jpg",300,212,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2026\/03\/Citi-Bank-18.jpg",612,432,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=5693"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5693\/revisions"}],"predecessor-version":[{"id":5695,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/5693\/revisions\/5695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/5694"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=5693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=5693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=5693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}