The following chart shows the performance of bank equity prices in Euro area, U.S. and emerging markets from the end of 2009 thru April, 2012: Source: Euro Briefing, April 2012, Institute of International Finance U.S. banks are better performers than European banks and even the banks in emerging markets as shown by the green line. …
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Most investors have stayed away from European banks since the credit crisis and the subsequent sovereign debt crises for good reason. Though European bank stocks rebounded last year and early this year, in the past few weeks they have fallen heavily due to the bailouts in Spain, political and fiscal issues in Greece and Italy …
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Asian banks for the most part remained relatively unscathed during the Global Financial Crisis of 2008. However that situation appears to be changing. According to a recent report in The Wall Street Journal, “Despite relatively strong economic growth, risks for banks are growing in Asia. Among the risks are a big increase in lending in …
Asian banks are relatively in a better position than European and US banks. Having stayed strong during the credit crisis, Asian banks continue to maintain high Tier 1 Capital Ratios and follow their conservative business models. In addition, state regulators have played a key role in strengthening the banking systems by formulating sound policies and …