European banks

European banks: How concerned should they be of Russia-Ukraine conflict?

MADRID | The Corner |  The escalation of the crisis in Ukraine has led to sharp asset prices and currency volatility with capital outflows from the region, particularly from Russia and of course Ukraine itself. UBS points out that the European banks within their coverage present “a meaningful exposure: the loans in Russia and Ukraine amount to over €60bn before taking into considerations any investment banking activity.”

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ECB: AQR results will be included in stress tests

MADRID | The Corner | ECB’s upcoming stress tests will have have the AQR findings incorporated (the so-called “join-up”), an element that was previously missing. And banks will be informed of the full and final results only shortly before they are communicated to the markets, as the central bank published on Thursday

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European banks sold off sharply in the past month

MADRID | By The Corner | Experts at JPMorgan think that it is largely due to positioning, regulatory concerns and profit-taking post ECB announcements in June. However, their funding costs have barely moved in the meantime and remain near historical lows. This is likely to have helped their earnings further in Q2.

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European banks raised €35 billion in CoCos in 2014

MADRID | By The Corner | European banks have strenghtened their capital ratios for the upcoming stress tests and the AQR, whose results will be known after the summer. In that sense, between July 2013 and May 2014, EZ lenders increased their base capital by €45 billion, although it wasn’t entirely by issuing shares but contingent convertible bonds (CoCos), by which they would have raised around €35 billion.

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EU banks still owe €450bn from last LTRO

MADRID | The Corner Team | Eurozone’s banks have yet to pay back €450 billion from the 2012 long-term refinancing operation or LTRO. Executive Director in Global Cash Equity Sales at JP Morgan Hugo Anaya maintains a positive outlook and believes that even the P/E re-rating in the Euro stock exchange may continue.

European Union

EMU banking : well-behaved vs rogue systems?

MADRID | By Luis Martí | The European banking union project received a remarkable boost last December, even if a major chapter, the bank resolution fund, had to conform to German requirements and stay on a national basis. This part of the agreement is a moot point, and Southern countries should have raised their voices and taken a firm stand against, as Münchau also wrote, no matter the delay inflicted to the working agenda of the eurogroup.

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EU stress tests: Draghi gets nervous

MADRID | By JP Marin Arrese | Draghi’s acid comment that a number of banks had to fail the forthcoming ECB asset quality and stress tests to ensure their credibility, sounded like a warning on his resoluteness to undertake an unsparing check before taking over full supervisory powers. His scaremongering statement has being judged as wholly inappropriate for a central banker. A position he is well acquainted with.