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Future of Banking: Fragile giants at the heart of western hopes

“If you’ve got money, you should go out and buy bank shares right away.”

The advice from Pan Gonsheng was typically forthright. Presenting stellar results from Agricultural Bank of China a few weeks ago, the lender’s vice-president felt every reason to be bullish.

He was talking about Chinese institutions, rather than the downtrodden stocks of their western equivalents – and similarly upbeat sentiment has surrounded other big emerging market banking sectors, notably Brazil’s, over the past couple of years.

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