Solvency

Despite years of official efforts to end the problem of banks that are too big to fail, many of the world’s biggest and most systemically important institutions have less capital put aside than smaller lenders — an anomaly causing concern to regulators.

According to Bartosz Golba, Senior Analyst for Wealth Management at Verdict Financial, Despite the initial turmoil caused by the UK’s vote to leave the EU, the value of UK individuals’ savings and investments will not decrease significantly in the long term...

Unipol Gruppo Finanziario SpA’s exposure to the Italian banking sector has made it the worst-performing stock in a sample of top European insurers and reinsurers since the U.K.’s vote to leave the EU roiled markets, according to data from S&P Global Market Intelligence.

London (S&P Global Market Intelligence) 10 May 2016 - Dutch banks could see their capital ratios significantly eroded under proposed new global rules on estimating the riskiness of mortgage loans, S&P Global Market Intelligence calculations show.

European bank stocks have collapsed so far this year whilst their credit default swaps have risen rapidly. Surely the credit and equity markets are telling us something? – Europe’s nascent economic recovery is over? Negative rates are killing net interest margins? They don’t have enough capital?…the list goes on. Whilst all the above cannot be ignored and investors need to select bank stocks carefully...