Huw van Steenis On Positive Prospects For European Banks
May 09, 2024
The recent bloom of European banks is significant as it indicates a shift in the economic landscape, with banks becoming less prone to risk and more profitable. This trend is occurring due to a combination of factors such as higher interest rates and pay on liabilities lasting longer than expected.
Huw van Steenis, Vice Chair, speaks with The Economist, commenting “there has been a reappraisal of the economics of banking, and today dominating one market is much more attractive than being all over the place.”
After the global financial crisis of 2007-09, European banks have been more inclined towards domestic consolidation rather than cross-border takeovers. One example of this is UBS, which announced its return to profitability a year after taking over Credit Suisse.
Real the full article here (paywall).