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:
+ 8.9% QoQ TSR performance of Western European banks
- 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).
-0.3% YoY real GDP growth in Q2 2023 in Germany
- 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.
Regulatory Gaps between the U.S. and the euro area
- 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.
You don't want to miss an issue and receive the zeb.market.flash by e-mail at the beginning of each quarter? Sign up here for our zeb.market.flash newsletter.
