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Scandals and Bailouts Fail to Dent Analysts' Faith in Emerging-Market Banks

  • Idiosyncratic events shrugged off in favor of ‘big picture’
  • Gauge of EM lenders rallies twice as quick as broader index
Turkey Lifts Bank-Funding Cost As Lira Drops To All Time Low 
Photographer: Kostas Tsironis/Bloomberg
Updated on

A $2 billion corruption scandal is rocking India’s banks. Russia has taken over some of its biggest private lenders, while Latvia’s No. 3 bank has been shut down amid U.S. money-laundering accusations. Added to that, Turkish financiers are under attack from Erdoganomics and warning signs are flashing for a Chinese bank crisis.

Then, why have earnings estimates for developing-nation banks jumped to a record?