zeb.market.flash. Issue #45: Regulatory gaps between the U.S. and the euro area.
Our overview of current developments in the global banking market
And here is what this issue is all about:
- Global top 100 banks regained market confidence in Q2 23, thus recovering from the decrease in market capitalisation in the previous quarter.
- Although hit hardest by the banking turmoil, the recovery of U.S. banks (TSR +3.9% QoQ) was near par with the global top 100 banks (TSR +4.2% QoQ).
- While GDP forecasts for Western Europe and the U.S. improved slightly, a recession is now expected for Germany in 2023, contrasting previous estimates.
- High inflation rates in Germany (6.9% YoY) and Western Europe (5.9% YoY) remain sticky in Q2 23, keeping up the pressure on the ECB.
- The banking turmoil in March 2023 caused some U.S. banks to fail, while euro area banks remained stable – can these different developments be explained by significant regulatory gaps between the U.S. and the euro area?
- Our detailed comparison reveals existing regulatory gaps between midsized U.S. banks (still large banks by European standards) and euro area banks.
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