The share prices of leading Italian banks were buffeted in early 2009 as investors anticipated damage to asset quality from their high exposure to emerging Europe. But senior managers say the region is still at the heart of their strategy, writes Philip Alexander.
Although not caught at the epicentre of the financial hurricane, the Portuguese economy's hopes of an upturn after four years of slow growth have been hit by the global recession. However, the country's trade links with Africa and Latin America and its lack of subprime exposure are giving some cause for optimism. Writer Peter Wise
Over the past decade, Greece's leading banks have expanded into south-east Europe. To remain competitive, however, they will now need to weather the financial storm and continue to focus on increasing their presence in the Balkans and the rest of eastern Europe. Writer Kerin Hope
Greece's service-based economy has been less exposed to the global downturn than elsewhere in Europe, but a positive outlook for 2009 will largely depend on how the tourist industry performs and whether lines of credit will remain available to smaller businesses. Writer Kerin Hope
Italian banks’ cautious approach has distanced them from the risky instruments and products at the heart of the economic crisis, yet prudence is more important than ever if they are to support the country’s ailing industries. Writer David Lane in Rome, Milan and Siena.
The time for recriminations is over. Iceland’s political and financial system must be rebuilt, and fast, if it is to maintain the quality of life to which its people has become accustomed. EU membership is increasingly regarded as the only viable option but it will be hotly contested. Writer Charlie Corbett in Reykjavik.
Through purchasing Dresdner Bank, Commerzbank has cemented its status as Germany’s number two retail bank. “Our geographic footprint broadens significantly, especially in important urban centres such as Munich, Berlin and Hamburg,” says Dr Achim Kassow, a member of the Commerzbank board of directors responsible for private, retail and small business banking.
Banco Santander’s capital raising last November was unexpected but investors responded surprisingly well. While Spanish banks have largely managed to avoid the fallout of the subprime crisis, the government is taking measures to ensure that any further global setbacks only have a minimal impact upon the country. Writer Jules Stewart.