Ratings agency Moody’s said yesterday that the European banks’ costs have increased due to the fact that the rise in regulatory and restructuring costs is eating up all the savings resulting from branch closures and workforce reductions.
banking regulatory burdens
Banks have made a massive effort to increase their solvency by sharply reducing risk exposure and boosting their own resources. They face rough times ahead as plummeting interest rates and profits leave them little room for comfort. Some big players, such as Deutsche Bank, have suffered huge losses while others struggle to keep pace faced with an adverse outlook.