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DatabankApril 11 2023

EU banks well positioned to weather market volatility

Banks’ share prices and credit spreads have partially recovered since the volatility that followed the confidence crisis surrounding Credit Suisse and Silicon Valley Bank. Barbara Pianese reports.
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Europe’s banks have a diversified funding and liquidity profile, according to the European Banking Authority’s recently published risk dashboard.

As of the fourth-quarter of 2022, retail deposits — which tend to be stickier than other forms of funding — made up 47% of total available stable funding. Cash and reserves represented 56% of total liquid assets, with central government assets reaching 19.4%. 

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