In contrast to several banks in the US, European banks are strong, according to their own assessment and analysts.
According to these experts, metrics show that European bank complexes appear stronger and more attractive than their counterparts in the US.
This was revealed during the Institute of International Finance conference in Brussels this week, as reported by CNBC.
“We have a very strong position in terms of capital, liquidity oversight, protection of our customers’ data. But we also need a bit more capacity to support growth so that we can become more profitable,” said Ana Botín, Executive Chairman of Spain’s Santander Group.
Regarding Swiss bank Credit Suisse, which faced insolvency and would have crashed if UBS had not intervened, Ana Botín attributed it to Credit Suisse’s mismanagement and liquidity problems.
Predicting further bank consolidation in the US
Davide Serra, CEO of Algebris Investments, adds that the European banking sector is “safer, stronger, cheaper” than American banks.
He believes that there will be further consolidation in the US banking sector this year following the previous collapses of regional banks in the country.
According to CNBC, José Manuel Campa, Chair of the European Banking Authority, assesses that the valuation of the European banking sector will improve as it becomes evident that the banks’ business models are sustainable in the face of rising interest rates.