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Special Supplement: Core Banking - Staying Ahead - While The Current Climate Is A Good One For Banks, They Should Not Ignore Major Software And Core Operating Systems Upgrades And Changes If They Are To Stay Ahead Of The Game And Sustain Growth. A View Fr.

To judge from earnings statements, banks these days would seem to have few troubles. Pre-tax profits for the world's top 1000 banks reached a record $417 billion in 2003, and in 2004, profits are estimated to have topped $500 billion.

But those popping champagne corks might look to the horizon, where disquieting storm clouds are gathering. Despite a market buoyed by a housing boom, healthy deposits and the lowest interest rates in a generation, many banks face considerable challenges. Rising interest rates portend a new cycle that already is cooling the red-hot growth of mortgage and consumer credit, adding pressure on prices and margins, and increasing problem loans that ...

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