Articles
Page 132 of 621
Increases in Euribor and potential impact on mortgages and the Spanish economy
30 March 2023
The rise in Euribor has cooled the housing market –transaction volumes have slowed and the price curve is beginning to bend. While at present the situation does not seem to pose a risk of a crisis for the Spanish economy, going forward, the evolution of employment will be key, as this is the main variable underpinning households’ ability to service their debts.
Autores: Torres, Raymond
Tags: Mortgage market
Shadow banking: A distortion of the banking business
Since the great recession, shadow banking has been growing worldwide, especially in the US and the Eurozone. However, monetary tightening and new capital requirements for private equity will likely slow down shadow banking growth.
Autores: Aires, Diego, Mota, Antonio, Olmo, Francisco del, Rojas, Fernando
Tags: Shadow banking
Bank profitability in Spain: A debate in need of perspective
Spanish banks announced record earnings growth in 2022, in tandem with the ongoing process of financial normalisation, in which interest rates increased, after years in negative territory. Despite strong performance, challenges remain, and banks must stay profitable and solvent on account of their systemic importance to a country’s business and social fabric, while pushing ahead with necessary cost-cutting and digitalisation.
Autores: Carbó Valverde, Santiago, Rodríguez Fernández, Francisco
Tags: Bank profitability
European and US banks: Inflexion point in their relative performance
After years of US outperformance, last year marked an inflexion point in the relative performances of the European and US banks in terms of both their market values and earnings. The relative outperformance by the European banks went a long way to close the sizeable profitability and valuation gaps opened up between the two systems more than a decade ago.
Autores: Alberni, Marta, Berges, Ángel, Rodríguez, María
Tags: Bank performance
Euro yield curve evolution and real long-term rates
Assessing the recent evolution of euro interest rates reveals that following the significant upward shift in short-term rates since the summer of 2021, long-term rates may have already stabilised at restrictive levels. Under this scenario, as short-term rates keep increasing, longer-term rates could gradually stabilise, generating a downward sloping yield curve.
Autores: Amor, José Manuel, Ezquiaga, Ignacio
Tags: Yield curve
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