Global Economy.
The Ifo index, which is a reflection of the global economic climate, suffered a significant fall in the first few months of 2008 to its lowest level in five years. As in the previous quarter, the biggest downturn was in the United States, once again as a result of turbulence on the financial markets. The impact of this gloomy economic climate is being felt primarily in North America and Western Europe but much less so in Asia. In most countries of Western Europe, the economic climate has already cooled down.

Developments in the Banking and Retail Industries.
Increasingly tough competition, price wars and pressure on costs continue to dominate business in retail banking and the retail industry. Consequently, international groups are striving to achieve further productivity and efficiency gains through the use of innovative information technology and are expanding their branch networks in fast-growing regions.