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.
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
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