zeb.market.flash. Issue #41: Soaring interest rates in turbulent times

Key Visual Flash 41 Laenderseiten 1

Our overview of current developments in the global banking market

With zeb.market.flash, zeb publishes a quarterly, up-to-date overview of the performance of the world’s largest banks.

The first chapter analyses the current situation of the banking sector. The next chapter looks at the economic situation and key drivers of the banking business. The last chapter in each issue deals with a special topic in detail.  

Click here for the current issue with the following focus topic:
Issue 41 | Juli 29, 2022 | The era of zero interest rate levels seems to be over

  • The rapid and strong increases in market rates over the past months have put instantaneous pressure on capital markets, both equity and bond markets, and thus have led to painful losses in the portfolios of the investors, including banks.
  • Consequently, banks with a high share of proprietary investments will experience noticeable cuts in their valuation results for 2022.
  • Of course, with higher interest rates, banks will be able to earn more money again in the longer term. This effect will obviously be influenced by the structure of banks’ balance sheets but also de-pends on the extent to which banks pass on higher rates to their customers.
  • On the one hand, customers are looking to reap higher yields from their deposits, and banks should be inclined to grant higher interests on deposits. This competition for deposits might lead to an erosion of the potential profits. 

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zeb is a thought leader in the financial services sector. Below you will find a selection of our current publications.

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