Western Europe

In public at least, the Bank of England has been determined to end its gilts intervention when it said it would, but it’s getting harder for the BoE to manage its conflicts – and the market doesn’t know what to believe any more.

Regulators want to prevent greenwashing; corporates need to abide by the rules. What happens when science doesn’t help?

With domestic retail borrowers under rising pressure, does political risk matter more than strong profitability and capital buffers at UK banks?

While the UK government remains unwilling to make notable concessions on its economic policies, the Bank of England will struggle to restore confidence in the embattled pound.

Societe Generale has exited, and Citi is winding down in retail, but the two biggest remaining Western European players in Russia are also spending a lot of time working out their exposures and operations in the country.

The French bank has continued its string of direct investments in fintechs this year and is looking for more with VC fund Anthemis.

Societe Generale’s choice of Slawomir Krupa to succeed Frédéric Oudéa suggests an approach of riding out the storm and continuing elements of Oudéa’s recent strategy, rather than any radical change.

A new job running Bayern Munich's finances could be more rewarding for HVB CEO Michael Diederich, especially after UniCredit CEO Andrea Orcel’s push for more cuts in Germany.

Clearing up after the government’s mess will only provide a short break in the repricing of UK risk.

The things that attracted Lone Star to Bank of Cyprus are present in banks in Greece and elsewhere in peripheral Europe. If other private equity-like investors take an interest, domestic political blessing could be the key to success.

Not long ago, correspondent banking was as basic as finance got. These days it is compliance and cost-heavy and in the crosshairs of aggressive and powerful regulators. Little wonder that so many banks are exiting small or fragile markets – actions that help their bottom line but hinder efforts at financial inclusion.

Fossil fuel assets were set to become obsolete in the transition to net zero. But the war in Ukraine is forcing European governments to secure alternative energy sources and driving demand for coal, oil and gas back in the wrong direction. With the global energy transition seemingly pitched against national energy security agendas, banks are trying to navigate a difficult path through the turmoil.

Issuing bank debt used to be easy. But with many banks now crowding through the same narrow issuance windows, even high-quality issuers have barely covered the books on some deals. And as non-performing loans look set to rise, investors are worrying that the boon from higher rates won’t last.

With far-right leader Giorgia Meloni now set to become Italy’s new prime minister, can policies put in place by her predecessor – coupled with reputational self-help – prevent Italian banks from taking another hit?

Kwasi Kwarteng’s debt-funded tax giveaway has re-priced UK risk at a stroke, but the high cost may bring scarce benefit.

The recent multi-decade lows experienced by the pound and the yen may have different origins, but they are also a reminder that history has a habit of repeating itself.

Removing UK bonus caps and undermining the BoE could exacerbate a sterling crisis while entrenching US IB dominance.

Smaller firms are expected to pull back on expenditure as recession risk rises.

As the world’s biggest investment banks prepare to report third-quarter earnings in October, the signals are bad across the board.

The Netherlands wants biodiversity to be at the forefront of agricultural reform. But the government’s plan to buy out livestock farmers – which was behind the resignation of agriculture minister Henk Staghouwer last week – is a short-sighted solution.

Anti-ESG boycotts are unlikely to cross the Atlantic.

Bank of Cyprus has its quirks – such as a sanctioned oligarch as a large shareholder – but it is far from the only European bank with good potential still shunned by mainstream investors.

Banks must keep spending on systems that deliver more efficient anti-money laundering as crises spur financial crime.

When the founders of Belgian digital disruptor Abbove held a meeting with 120 wealthy families, all had the same tale of woe, unable to grasp the complexity of their money and getting little help from their private bankers. Abbove set out to create a platform to let them do just that.

The government is prepared to take drastic measures to reduce the nitrogen produced by livestock. But as farmers resist being pushed out of a profitable sector, the dispute demonstrates the cost of turning climate agendas into a race to cut emissions as quickly as possible.

The market is awash with speculation over what Credit Suisse might do in its latest strategic reset, and what the future is for its perennially underperforming investment bank. But as talk mounts of radical cuts to come in that division, the real challenge lies elsewhere.

Banks may soon match energy companies for political unpopularity – posting soaring profits, even as customers struggle with the cost-of-living crisis, and higher interest rates. To safeguard their long-term interests, banks need to show much greater social awareness in their actions.

One of the architects of Deutsche Bank’s corporate and investment bank leaves a complex legacy.

With more than 220 million homes to renovate, banks must provide the necessary funding to avoid being left with non-compliant housing assets. But a lack of standardized data on energy performance certificates makes it difficult to justify lending to some homeowners.

The European Central Bank has made it clear that it would look favourably on big bank mergers to create stronger pan-eurozone lenders. But M&A between large lenders in different eurozone states is still stalling through financial and political fragmentation – despite hopes for a closer union after Brexit and the war in Ukraine.