Announcements

    Drinks

      The Wide Angle – Takeaways for European banks from the SVB collapse
      TUESDAY, 14/03/2023 - Scope SE & Co. KGaA
      Download PDF

      The Wide Angle – Takeaways for European banks from the SVB collapse

      We are not witnessing the beginning of another banking crisis. SVB is not symptomatic of the state of US or European banking. Sentiment on most large European banks will bounce back. Sam Theodore offers key takeaways for European banks and supervisors.
      1. The stability and dynamics of a bank’s deposit base and depositor concentrations must always be top elements for consideration in any assessment of banks.
      2. Europe’s bank regulatory framework is a factor of strength for the sector, not an impediment. Regulatory relaxation and bank lobbying to achieve it can easily lead to unpleasant outcomes.
      3. Banks in difficulty will never find it easy to raise new equity. The best avenue for a bank to stay well capitalised is to preserve and grow what it has rather than rely on future market issuance. Banks should think long and hard when it comes to share buybacks.
      4. Smaller banks more vulnerable in new era of digital runs. SVB was the first major bank run of the digital age, occurring mainly out of the limelight of images of worried customers queuing at branches. Smaller and insufficiently diversified second and third-tier banks are vulnerable. Supervisors need to sharpen their tools to anticipate and prevent bank runs custom-made for the digital age, perhaps via future stress tests.

      Read the latest edition of The Wide Angle.

      Related news

      Show all
      French bank quarterly: net interest income and strong CIB performance support revenue momentum

      11/7/2025 Research

      French bank quarterly: net interest income and strong CIB ...

      Webinar: Mid-year European banking outlook

      10/7/2025 Research

      Webinar: Mid-year European banking outlook

      Scope affirms Danske Mortgage Bank PLCs Finnish mortgage covered bonds rating at AAA, Stable Outlook

      8/7/2025 Rating announcement

      Scope affirms Danske Mortgage Bank PLCs Finnish mortgage ...

      Scope has completed a monitoring review for Landwirtschaftliche Rentenbank

      7/7/2025 Monitoring note

      Scope has completed a monitoring review for ...

      Scope affirms Intesa’s A issuer rating with Stable Outlook

      7/7/2025 Rating announcement

      Scope affirms Intesa’s A issuer rating with Stable Outlook

      Santander’s TSB acquisition strengthens UK focus, Sabadell re-focuses on domestic market

      7/7/2025 Research

      Santander’s TSB acquisition strengthens UK focus, Sabadell ...