finance PM market analysis — 2026-09-18

Central banks are turning more hawkish as inflation pressure resurfaces, with policymakers signalling that further tightening may be required and raising the stakes for funding costs and credit conditions.

Banks are responding by favouring stronger borrowers and protecting asset quality rather than chasing loan growth, a stance likely to weigh on lending expansion and net interest margins.

Large-bank commentary, including recent HDFC Bank results, points to resilience in deposits, asset quality and profitability, offering a steadier benchmark against the more cautious tightening narrative.

Expanding institutional use of blockchain and tokenisation by major banks such as JPMorgan and HSBC suggests regulated incumbents are absorbing rather than losing ground to new financial infrastructure, with fintech attention shifting toward enabling banks rather than competing with them directly.