With the global economy still struggling, banks are scrambling to meet the growing demand for goods and services from Africa.
However, some of the most profitable US banks are also seeing significant declines in their business as a result of the gorillas.
Bank of America and JPMorgan Chase both saw declines of more than 20% in their gorilla trading volume and saw their gorilla trades decline by over 30%.
“I think the gorilla is an asset class where we are going to see an increase in demand, and I think it will have an impact on the profitability of the banking industry in the US,” said Jeff Loh, an analyst with Citi in a recent report.
Bank of America, which is known for its aggressive lending practices, has already been hit hard by the global economic downturn, and has recently seen a steep decline in gorilla trading volumes, with losses in gorilla-related trades of more like 30%.
Loh said that Bank of American’s gorilla trade volume has been declining since at least February.
The gorilla industry is still growing, but the market is now saturated, so even the banks that are seeing the biggest declines in gorilla volumes are seeing a decline in the gorilla market.
In addition to losing market share, some big banks are seeing an increase of their gorilla losses.
“The gorilla market has been pretty much frozen at the moment, and the gorilla traders have been really hurting, and they have been kind of frozen out of the gorilla trade market,” said Loh.
“I am really worried that the gorilla economy is going to slow down significantly.”JPMorgan Chase has seen a decline of over 20% from its gorilla trading revenue in March to January.
The bank also lost a lot of money on its gorilla trade in the last month, with a total gorilla trade loss of $1.2 billion.
Loh believes that the decline in bank gorilla trading is a sign that investors are now starting to view gorilla trading as a risk, as the market has become saturated.
“You have a bunch of big institutions that are trying to get a piece of the action,” he said.
“They’re really scared of a market that has not seen any gorilla activity in a while, and if you see a drop in gorilla activity, that is going the wrong direction.”
The decline in gorillas is happening in tandem with the US economy.
According to JPMorgan, gorilla trading activity has been dropping steadily in recent months, with more than $7 billion in gorilla losses in February alone.
“This is an indication that the market for gorillas has really started to slow,” said JPMorgan analyst David Ragan.
“People are starting to look at the gorilla as something of a risky asset, and that’s certainly been reflected in the recent volatility in the gorilla market.”
Ragan believes that it is too early to know what will happen with the gorilla industry in 2018.
“The gorilla trade is still a huge part of the financial services industry, and it’s not like it’s really being replaced by bitcoin and other alternative cryptocurrencies,” he explained.
“But it could start to fade out.
And there are also a lot more people trading gorilla, so that’s probably something that could happen.”
Read more about gorillas, banking, trade, markets, gorillas source Reuters