I was in NYC this week and there is a lot of talk of the relative strength of US banks versus European banks. Although I heard this view directly from execs, it is easy to find it on-line and in the press too. CNBC has citied Thought Leader Mike Mayo as saying that US banks were faster to raise capital, did more of it, and strengthened their balance sheets and business lines more effectively. Mayo is quoted as saying US Banks have more quality capital!. The December/January edition of Institutional Investor (II) talks about the restructuring underway in European banks, some seven years after the financial crisis. Sliming down investment banks, reducing trading activities, getting ready for the ring-fence (perhaps), and is some cases (such as Postbank) shedding retail operations.
They emphasise the challenges of all European banks but somewhat highlight DB in particular. Just 3 months ago, its CEO (who is widely respected as the right man for the current job) announced 35,000 jobs would be axed over three years, the dropping of sub-scale businesses and clients and sorting out IT and operations in order to meet the ever growing list of conduct standards coming out from Basel. II also argues that American banks were more nimble and responsive in restructuring and raising capital than their European rivals. All this may mean a real sea change in the competitive landscape for global banking. The CNBC article can be view here:http://www.cnbc.com/2016/02/08/european-banks-face-major-cash-crunch.html. Apologies for the photo above... its not that stark of a difference in reality but I couldn't help myself!
Comments
Post a Comment