Large banks in the region retain more than 70% of all banking assets, with an average size of almost €700bn.
Many banks are members of the Net-Zero Banking Alliance, but the “net zero” targets leave controversial portfolios unaddressed.
The decline also reflected the increased competition with specialist and challenger banks.
The country’s Financial Conduct Authority has written to High Street banks asking them to justify their lower savings rates.
Globally, M&A deals dropped 19.6% year-on-year in 2022. All regions, except for the Middle East and Africa, saw a year-on-year decline.
Meanwhile, countries in the region are increasing the amount of deposits protected by EU deposit guarantee schemes.
The issue is especially acute in countries still with a large ATM network, such as Germany.
Even before the collapse of Silicon Valley Bank, investors and depositors had already started shifting their money from banks into more lucrative funds.
Banks’ share prices and credit spreads have partially recovered since the volatility that followed the confidence crisis surrounding Credit Suisse and Silicon Valley Bank.
European lenders are less exposed than US banks.
The loan-to-deposit ratio across the continent has decreased since the end of the global financial crisis.
The embattled Swiss lender has seen its deposits plummet by more than 40% in the past year.
In 2023, the South American country’s high inflation is expected to surpass 100% and economic growth estimated at 0.3%.
Credit expansion in emerging market economies has been rising steadily for years and reached a peak in 2020.
The Baltic country’s banking sector is demonstrating resilience to external shocks.
The proposed overhaul of the judiciary will discourage foreign investors, critics say.
The country’s banks have had only patchy success in increasing their loan portfolios.
The country’s banking sector has seen an increase in its number of branches in the past few years.
The European Court of Justice will rule on whether Polish banks can charge interest on Swiss franc mortgages invalidated by local courts.
Lenders in the region are witnessing an increase in profitability.