Emerging market banks remain attractive despite developed market banking turmoil

Generally a positive picture

The turmoil seen among developed market banks this year has triggered concerns that there could be a spillover effect to emerging markets.

The direct risk of contagion is very low. The problems we saw at US banks were down to deposit concentration and asset-liability mismatches. Although there is variation across emerging economies, we broadly see a positive picture for emerging market banks, which are better capitalised and subject to tighter regulations. Amundi: EM energy transition is a 'low hanging fruit' The banks we focus on are high quality, deposit-taking franchises, with granular (or well-diversified) deposit bases and closely matched assets and liabilities. They are therefore not exposed to the deposit fl...