zeb.market.flash (Issue 10 – July 2014) Western European banks fall behind in Q2 2014—results from AQR and stress test awaited

Key topics

1. State of the banking industry

  • Global banking industry with solid increase in market cap and positive TSR — but global top 100 banks worst among all industry sectors
  • Western European banks with negative TSR

2. Key banking drivers

  • Surprisingly sharp drop of US GDP, but Western Europe continued its recovery
  • ECB and Fed’s monetary policy lowered long-term interest rates again in Q2 2014, leading to even flatter yield curves — German interest rates back at their level of 2012
  • Investment banking clearly improved with higher volumes in all segments

3. Special topic: The EBA stress test—challenging the European banking sector’s substance

  • EBA stress test is the next core element in ECB’s Comprehensive Assessment
  • EBA currently analyzes delivered results and refines methodology and calibration
  • Results are expected at end of October

Picture: Skyline Toronto

Download zeb.market.flash (Issue 10 – July 2014)

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Author Dr. Dirk Holländer

Dr. Dirk Holländer

Senior Partner Office Frankfurt

Volker Abel

Senior Manager zeb Frankfurt
Author Dr. Ekkehardt Bauer

Dr. Ekkehardt Bauer

Senior Manager Office Münster

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