Global economic climate
- The global economic environment got worse as GDP growth rates and forecasts declined around the globe
- ECB support promote Western European sovereign CDS spreadsย significantly โ decline of 50% within one quarter only
Key banking drivers
- In Q3 2012, market volatilities and uncertainties clearly calmed down โ the euro recovered moderately
- The interbank funding situation improved considerably with positive effects on the banksโ margins
State of the banking industry
- Central bank support in Europe and the US boosts banksโ equityย performances in these regions with double-digit TSR figures outperforming BRICS countries in Q3 2012
- Impact also visible on debt side as average CDS spreads of banks declined significantly and series of rating downgrades was brought to an end despite weaker economic conditions
