As Commodities Plummet, Banks Edge Towards Undercapitalization

Moderator: moderators

kreslik.news
rank: 5000+ posts
rank: 5000+ posts
Posts: 5163
Joined: Thu Jan 14, 2016 9:36 am
Reputation: 0
Gender: None specified

As Commodities Plummet, Banks Edge Towards Undercapitalization

Postby kreslik.news » Wed Feb 17, 2016 4:14 pm


Analysts from Bernstein Research state that European investment banks and US brokers are in general still undercapitalized, despite 6 years of spending aimed at remedying the situation.

According to the analysts, Deutsche Bank’s tangible equity is just 2.7% of its tangible assets. This is when we exclude the deferred tax assets. The only bank that has it worse is Credit Agricole with 2.3%. A little better is Credit Suisse with 3.0%. Standard Chartered looks good for now (7.3%) but it’s being heavily pushed by the markets that bank with commodity exposure.

At the same time we have the French banks like SocGen ... (read more)

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

Return to “news”