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EU Monitor 67 June 15, 2009 Financial Market particular(prenominal) Global banking trends subsequently the crisis The near-term prospects for US and European banks ar in spades grim. The global pecuniary crisis impart bring around the close to significant changes to their direct framework banks take a leak seen in decades. on that point will be fundamental re-regulation of the industry, ownership structures be unfirm towards heavier state involvement and investor scrutiny is rising strongly. Equity ratios will be good high. As a result, product and positivity of the banking empyrean as a whole are belike to decline. Lean years lie ahead for US banks. capital punishment improvements during the last 15 years have often been imputable to strong bring growth and low credit losses. As private households minify their indebtedness, revenue growth in several(prenominal) European countries just now oddly the US may remain depressed for some(prenominal) y ears. With weak loan growth and a return of higher loan losses as well(p) as a fundamentally diminished importance of art income and modern capital marketplace activities such as securitisation, banks may be missing major growth drivers. Consolidation to continue but with a different focus.

plot of land there will so far be a sizable number of deals, transaction volumes are likely to decline and restructuring stories quite a than strategic M&A may dominate. The probability of internal deals has increased, while that of cross-border mergers has declined. internationalization of European banks likely to slow. Uncertainty about the future prospects espec! ially of foreign markets and strictly national banking sector stabilisation programmes are triggering a re-orientation towards domestic markets. This is more pertinent for European banks that have greatly expanded into other European countries recently, while American banks overall may continue to aim the national market rather than going abroad. Author Jan Schildbach +49 69 910-31717 jan.schildbach@db.com editor Bernhard Speyer...If you want to get a ripe essay, order it on our website: OrderCustomPaper.com

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