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Presentation: European bank performance 10 years after the crisis

More documents about "Europe"

143 Documents
October 24, 2018
Region:
1
Accelerated by the consequences of the financial/economic and migration crisis, the influence of anti-European, anti-migration movements with a populist playbook in the EU is growing. For the EU, the next crucial stocktaking of voters’ sentiment will be the 2019 elections for the European Parliament on 23-26 May. The European political landscape and with it the composition of national parliaments in the EU member states has changed over the last five years and in some countries substantially so. These shifts can be expected to be reflected in the next European Parliament as well, and – as already the case in the Council – impact European policymaking. [more]
October 23, 2018
Region:
2
The European banking industry remains in restructuring mode. Most institutions are focused on increasing profitability and returns to shareholders. In contrast to previous periods of rising net income, the key this time is exiting less attractive parts of their business rather than expanding across the board. Hence, most P&L and balance sheet components have declined year-over-year, with one major exception: profits. Capital levels have suffered from new, more conservative accounting rules on loan loss provisions. [more]
October 12, 2018
Region:
3
During the last few years, the expansion of digital infrastructure in the EU has been carried out more slowly and less comprehensively than politically intended. The EU’s objective of ensuring fast broadband coverage of more than 30 megabits per second for all Europeans by 2020 seems out of reach. There are economic and regulatory reasons for the insufficient progress with digital infrastructure improvements. However, inadequate digital infrastructure puts companies at a disadvantage versus US competitors, but increasingly also versus Chinese players. The European Commission estimates that more than EUR 500 bn will need to be invested by 2025 to achieve the goal of a “gigabit society”. [more]
July 2, 2018
Region:
7
The UK’s exit from the EU will have significant repercussions for the financial industry, notably investment banking. London as the primary European hub is likely to lose its full access to the single market. Currently, financial services exports play a major role for Britain and almost half of them go to the EU. Without the surplus it generates from providing investment banking services to EU customers, Britain’s current account deficit would be 40% higher. Following Brexit and the likely loss of the single European passport, non-EU banks will have to set up or build-out subsidiaries in the EU-27 with own capital, liquidity, corporate governance and fully-fledged operations. This could lead to an additional EUR 35-45 bn of capital being ‘ring-fenced’. This represents a further leg of banking balkanisation with trapped capital, liquidity and resources – profitability will be under pressure and not all EU business models will be viable. [more]
June 28, 2018
Region:
Analyst:
8
With the new Payment Services Directive ("PSD 2") of the EU, which entered into force on 13 January 2018, payment services in Europe have become the frontrunner of "open banking". Account holders can request, free of charge, that banks transmit their financial data in digital form to third parties. Furthermore, they can authorise third-party providers to initiate payments from their bank account. Personal data are owned by the data subject – this principle also forms the basis of the new General Data Protection Regulation (GDPR). Under the latter, however, there is no obligation to provide a technical solution through which customers can transmit their personal data to third-party providers in a convenient manner. In contrast to the PSD 2, the GDPR is therefore unlikely to stimulate innovation and competition in payments. In the financial sector, competition will thus be distorted. Banks must grant competitors access to customer data and their payment infrastructure, whereas internet platforms, for instance, de facto retain sovereignty over the personal data of their customers as well as access to their platforms. [more]
June 13, 2018
Region:
9
Several aspects of the European data protection regulation GDPR could have far-reaching implications for competition in the EU’s data economy and the competitiveness of the bloc’s tech industry and AI startups. Data protection “made in Europe” could give European companies a competitive edge as users become increasingly privacy-aware. But GDPR could also end up rather strengthening the position of incumbent tech giants and throw the continent further behind the US and China in the emerging race for global AI dominance. If potential negative implications of the regulation for the EU’s data economy materialize, EU lawmakers should not hesitate to make adjustments accordingly. [more]
May 29, 2018
Region:
Topic:
Analyst:
10
The third and fourth pipeline strings for Russian gas transports through the Baltic Sea to Greifswald/Germany, which are also known under the term of “Nord Stream 2”, are now under construction, doubling the existing transit capacity of Nord Stream 1. The project continues to be highly controversial, given arguments that it might drive a wedge between the EU countries, the United States’ opposition and the risks it poses to the triangle of energy, environmental and security policies. That – also thanks to Germany’s initiative – Russian gas flows through the Ukraine look set to continue following the expiry of the old contracts in 2019 is a step forward and may foster acceptance of Nord Stream 2. In the face of the recent realignment of global gas trading, this would be in the interest of (nearly all) players. [more]
April 12, 2018
Region:
11
The EU institutions are about to decide on major new rules regarding the reception and the treatment of asylum applicants as well as their allocation among member states. The trigger for the intended reforms relate to the current regulatory framework’s shortcomings that emerged during the refugee crisis: an uneven sharing of responsibilities for asylum procedures and massive irregular migration within the EU. However, the Dublin procedure recast has stalled, as several member states strictly refuse the planned corrective mechanism for a fair sharing of responsibility. The prospects seem to be more favourable with regard to the harmonisation of the asylum procedures and conditions. [more]
March 19, 2018
Region:
12
The major European banks have seen their revenues stabilise in 2017, and through further cost-cutting and improvements in asset quality, their profitability rebounded strongly to the second-best figure in the past decade. However, banks continued to shrink, and both total assets and risk-weighted assets fell substantially. This helped capital and leverage ratios to reach new record highs, finally laying questions about the sector’s capitalisation levels to rest, at least on aggregate. Large European banks lost ground versus smaller competitors and also remained far behind their US peers, although they were able to catch up somewhat on this front. [more]
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