Banking, Financial Markets and Regulation
Like the regulatory framework, the structure of the international financial markets influences the development of financial service providers and economies. Scenarios for the future development of the global financial market, and the related opportunities and risks, are a major part of the work of Deutsche Bank Research.
Interactive map
European banking markets
Talking point
The sun is shining again: European banks rebound
After literally seven lean years, the European banking industry’s recovery from the financial crisis is now in full swing. Profits are at their highest level since 2007, revenues are growing across the board (helped by favourable currency effects) and loan losses are falling. Banks are also expanding business volumes. Capital ratios are on average substantially above Basel III requirements, though uncertainty has increased recently due to a pending further regulatory tightening (“Basel IV”). [more]
Global financial markets
Money market funds – an economic perspective: Matching short-term investment and funding needs
Money market funds are important financial players in Europe and the US, offering investors capital preservation and daily liquidity on the one hand, while providing short-term funding in money markets on the other. However, the European and US markets differ in their structures and economic functions: In Europe, where the market is split into two distinct segments, MMFs’ balance sheets reflect to a large degree intermediation within the financial sector and a strong investment focus on bank debt. In the US, by contrast, a homogeneous set of industry standards exists and MMFs’ business is geared more towards direct intermediation between non-financial sectors. [more]
Corporate funding in Germany
Monitor Corporate funding in Germany
Following a strong start to the year, lending to German corporates and self-employed grew only modestly in Q2 2015 (+0.2% qoq). Most core manufacturing industries performed well, whereas loans to the metal industry, trade and transport disappointed. Domestic credit banks saw the biggest expansion in lending volumes, in contrast to Landesbanks which suffered a setback. Financing alternatives posted convincing results. Plus: Financial Market Special on market shares of banking groups in individual industries. The German economy continued on its growth path in Q2 (GDP +0.4% qoq). However, domestic demand slowed with both investments and private consumption lower than expected. Foreign trade stepped into the breach. The H2 outlook weakened somewhat, with growth drivers probably reversing again (available only in German). [more]
Chart in focus
Global financial markets
Deposit insurance in the Banking Union: Options for the third pillar
Reform of deposit guarantee schemes (DGS) in the EU has followed a gradual approach. The latest reform established common requirements on financing for national schemes but funds remain separate. The debate about the future of DGS has been revived recently, though. The five presidents' report on completing Europe's Economic and Monetary Union put DGS reform back into the larger reform discussion and identified deposit insurance as one of the areas of the Banking Union still pending completion. While joint deposit insurance may seem a rather long-term option, several short- and mid-term suggestions to complement DGS have been raised. They put an emphasis on adapting the current setup with a view to increase back-up financing capacity of individual schemes. Ideas include i) strengthening the network of DGS and possibilities for bilateral lending, ii) establishing a reinsurance scheme, iii) developing a common fiscal backstop to national DGS. [more]
Spotlight on Germany
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