Reported 17 days ago
European banks are preparing for intensified competition and potential deregulation under a second Trump presidency, which may widen the earnings gap with their more profitable U.S. counterparts. While European shares recently outperformed U.S. banks, expectations for significant policy changes in the U.S. could give American lenders an advantage in capital optimization and loan volumes, making it challenging for European banks to compete. The situation is further complicated by Europe's strict regulatory environment and unresolved non-performing loans, as the industry anticipates shifts in U.S. banking regulations and their implications for the global financial landscape.
Source: YAHOO