Rising interest rates are not the mere boon to long-suffering European banks that they might first appear. Patience will be required. European bank stocks have outperformed strongly this year, rising around 6% even as the broader market fell. These are economic indicators, so signs of recovery have supported them, alongsideRead More →
The European Central Bank wants to ensure that credit flows into the European economy to support its recovery as the pandemic continues. Banks cash in. Eurozone banks make money through an ECB program that essentially remunerates them for lending, increasing their income, and helping to offset some of the costsRead More →
European banks are under pressure to review their operations in the aftermath of the Covid-19 crisis, or risk losing up to 160 billion euros in revenue. That’s according to a report by consultants Oliver Wyman, which says that while European banks have weathered the pandemic better than expected, they needRead More →
European banks are heading for second quarter results after suffering near universal drops in key capital levels, threatening their ability to lend, while most have also seen their liquidity capacity to meet their financial obligations s’ weaken. S&P Global Market Intelligence research looked at the Tier 1 capital and liquidityRead More →
According to a study by S&P Global Market Intelligence, many major European banks entered the coronavirus crisis with their liquidity situation worsening, even as the European Central Bank resorted to paying banks to maintain liquidity. The Italian Banca Monte dei Paschi di Siena SpA, the British Standard Chartered PLC andRead More →
A maxim often repeated in the banking industry is that you cannot “cut to the glory”. Hindered by the long-term extension of negative rates by the European Central Bank, slowing economic growth, Brexit and burgeoning regulatory requirements, lenders from Germany, UK, France, Spain and Switzerland have collectively announced more thanRead More →
Banks have long had an advantage when it comes to customer data. From checking accounts to credit cards, established lenders have access to vast amounts of information that financial technology (fintech) competitors could only dream of. In Europe, all that could be about to change. This Saturday, banks operating inRead More →
We long for turning points. As we mark five years since European Central Bank President Mario Draghi’s ‘whatever it takes’ speech – which crushed government and corporate bond spreads and contributed to an 80% rise eurozone equities – are we on the verge of another inflection? The Eurozone has justRead More →