Half of firms are ill-prepared for a downturn, report finds
Upstarts spend more on innovation and target lucrative markets
More than half of the world’s banks are too weak to survive a downturn, according to a survey from consultancy McKinsey & Co.
A majority of banks globally may not be economically viable because their returns on equity aren’t keeping pace with costs, McKinsey said in its annual review of the industry released Monday. It urged firms to take steps such as developing technology, farming out operations and bulking up through mergers ahead of a potential economic slowdown.
