European banks are displaying strong and stable financial and business fundamentals due to the effectiveness of the supervisory regime and practices successfully pursued since the aftermath of the global financial crisis a decade and a half ago.

As COP 28 starts, investors are once again grappling with the need to make their views count when assessing the feasibility of net-zero strategies, especially in the energy sector. This may be good news for green-bond issuance.

Earnings growth puts Swedish banks in a strong position to confront shrinking volumes, higher funding costs and the risk of higher provisions in the year ahead amid a gloomy economic outlook, says Scope Ratings.

Commerzbank’s new three-year growth plan is reliant on durably favourable interest rates, ambitious revenue gains in private and corporate banking, plus benign banking-sector competition and buoyant activity in Germany, leaving room for disappointment.

Italian bank profitability has settled at high levels thanks to wide interest margins and low provisions. Financial fundamentals are robust and banks are well placed to face a softer economic outlook and uncertainties around lending and deposit dynamics.

Wednesday December 13, 15:30 CET

European banks’ minimum reserve requirements are coming into focus as the ECB seeks to normalise the transmission of monetary policy and improve the allocation of liquidity across the banking system.

Rising interest rates and shrinking liquidity, the two most visible effects of the ECB’s tighter monetary policy, are having a major impact on European banks’ balance sheets, including retail funding, as customers seek better remunerated products.

The prompt and unconditional takeover of a financially stressed bank by a financially healthy peer should be the only effective endgame of bank resolution . If resolution really must be activated (a big if).

Tuesday, November 7th 2023 - 3:30 PM (CET)