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
In Q1 2015, lending to German corporates and self-employed bounced back (+0.8% qoq). Loans to the manufacturing industry recovered some lost ground, while lending to the services sector and self-employed remained robust. Convergence among banking groups continued, except for the Landesbanks. With regard to financing alternatives, both bond and equity issuance disappointed. The German economy grew less than expected in Q1 (GDP +0.3% qoq), but underlying dynamics remain solid. Domestic demand – and particularly private consumption – was the sole growth driver. Higher investments only compensated for a decline in inventories. The GDP forecast for 2015 has been lowered to 1.6% (available only in German). [more]
Chart in focus
Clients with a migrant background: The role of risk preferences in retail banking
Clients with a migrant background are growing in importance as a target demographic for retail banking. In collaboration with Bayreuth University we have carried out an empirical analysis of risk attitudes in this customer group using data supplied by the German Socio-Economic Panel (SOEP). Our findings allow implications to be drawn for bespoke advisory services for clients with a migrant background. In effect, banks will be able to raise the quality of their financial advice to the customer's benefit – and tap into a key growth market at the same time. [more]
Spotlight on Germany
Copyright © 2015 Deutsche Bank AG, Frankfurt am Main