Research Briefing | Feb 1, 2022

Eurozone banks dodge Covid bullet, but vulnerabilities remain

Ipad Frame - Eurozone | Banks dodge Covid bullet, but vulnerabilities remain

The banking sector has proved resilient during the pandemic, and eurozone banks will continue to play a significant role supporting the near-term recovery. That said, a sustained virtuous cycle between banks and the economy looks unlikely in our view.

What you will learn:

  • Eventually, eurozone banks will have to deal with long-lasting weak profitability.
  • Sector fragmentation means cost efficiencies remain limited, while revenue prospects are constrained by low interest rates and a relatively flat yield curve.
  • Corporate fragility remains high in the sectors more heavily impacted by the pandemic.
Back to Resource Hub

Related Services

Post

What AI means for economies, businesses, jobs & cities

Artificial Intelligence has the potential to fix the world's productivity problems, just as previous general purpose technologies such as steam power, electricity, and computers have, in our view.

Find Out More

Post

Australia: Flight to quality occurring but secondary markets may not be doomed

We believe the most significant policy measures to come through in the budget for residential building are the announced tax tweaks for build-to-rent (BTR) development.

Find Out More