New Delhi, Nov. 13 -- Global banking sectors are facing growing challenges due to rapid digitalization, adoption of artificial intelligence (AI), climate change, and increasing cyber threats, according to a report released by S&P Global Ratings.

The report said that these evolving risks will put pressure on some banks' business models and risk management practices while offering opportunities for others.

"These evolving risks will challenge business models and risk management for some banks and offer opportunities for others. We eventually expect increasing credit divergence," the report stated, indicating that the performance gap between stronger and weaker banks could widen in the coming years.

The report also identified several macr...