Germany: Banking Sector
Slower lending near term – shift in investor preference to securities long term Slower bank lending due to weaker housing activity plus lower interest margins will curb this year’s profit growth in the banking sector and for public banks in particular. Key trends - the concentration of public banks’ lending activity to Landesbanks and (on the liability side) the proliferation of investment certificates by private banks. The combination of sustainable growth and higher interest rates is likely to shift investor preferences to higher yielding products, exerting margin pressure on savings banks.
Asset conclusions: economy and capital markets boost banking profits, but slowing ahead, notably due to lower housing lending, flatter yield curve.
© Graham Bishop
Documents associated with this article
|
|
EZA792.pdf
|
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article