about us | newsletter | contact | archive | members area
Bogdan Nitulescu, Tremend
Cryptocurrencies volatility is a big problem»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   INFRASTRUCTURE   |   GREEN   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

PwC: The European banking sector is still fragile

In response to the ECB publication the Comprehensive Assessment results, Colin Brereton, economic crisis response lead partner at PwC, commented:

2014-10-30 12:59:13

"The Comprehensive Assessment results are in, and although this should restore some confidence and stability to the market, we are still far from a solution to the banking crisis and the challenges facing the banking sector. The Comprehensive Assessment was only a one-off test of solvency, not of ongoing viability. The test of long-term viability is whether banks can generate sufficient returns to cover all their costs, including capital costs."

"The point where many of Europe's banks will be able to satisfy this long-term viability test is still a way off due to the prospect of continued weak economic conditions and low interest rates across Europe, an overhang of operating, compliance and restructuring costs, and mounting competitive threats from start-ups and non-bank challengers. The Comprehensive Assessment has bought time for some of Europe's banks to get themselves in shape."

"The immediate focus will be on those institutions that have failed the Assessment. They will need to raise additional capital, and shareholders will look for assurances on getting a return on that capital. All banks, including those that have passed the test, must offer a satisfactory return to their shareholders. For those banks in relatively better shape, there are potential growth opportunities."

"Many banks are clear on the issues and challenges, and will relish the opportunity of the fresh start that the Comprehensive Assessment provides them. The winners will be those that are clear about what they're good at, remain focused on their customers' needs, have the resources and courage to invest and innovate, and have the conviction to cut and streamline where needed.

"Banks must be open to changes in the way they structure and fund their businesses. There will be continued pressure on bank balance sheets, including focus on capital, liquidity and leverage. The sustainability of banks will also be under supervisor scrutiny as part of their review and evaluation process, for which the Comprehensive Assessment is a starting point.

"The balance sheet restructuring process is ongoing as banks continue to offload non-core legacy assets, streamline their portfolios and seek funding efficiencies. There is an increasing focus on operational restructuring as they reduce costs and improve their agility through outsourcing and partnerships. A renewed focus on customer service is the ultimate priority. Hopefully, the Comprehensive Assessment will provide a clearer path now for many banks to move forward."

PwC has worked with over 60 per cent of banks in the Comprehensive Assessment exercise, either as "AQR auditors" for the National Competent Authorities (NCAs) (32 banks across 12 countries) or providing AQR bank side support (46 institutions across 10 countries).



COMMENTS
'.$nr_comm.' comment:
'; } else { echo 'There are '.$nr_comm.' comments:
'; } while ($row = mysqli_fetch_array($result, MYSQLI_ASSOC)) { echo '
'.$row['nume'].": on ".$row['data']."
"; //echo str_replace('\n','
',$row['comentariu']); echo nl2br($row['comentariu']); echo '
'; } ?>

0 Comments  |  6895 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...

 
 
   
advertising

advertising

advertising

More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

2 Comments

EBRD cuts economic growth forecast for Romania

Romania's economy will grow by 4.2 per cent this year and by 3.6 per cent in 2019, according to the most recent forecast released by the European Bank for Reconstruction an...

1 Comment

Dacia receives 115.8 million RON in state aid from the Finance Ministry

The Romanian Finance Ministry has signed five more grant agreements under the state aid scheme, and among the beneficiaries are Automobile Dacia, with RON 115.8 million.

1 Comment

OTP Bank Romania signs investment funds distribution deal with Eurobank Fund Management Luxembourg

OTP Bank Romania signed a partnership with Eurobank Fund Management Company (Luxembourg) for the distribution of investment funds in Romania. Thus, from December 1st, OTP B...

Fondul Proprietatea expresses disappointment over Engie listing rejection

Fondul Proprietatea is disappointed with the decision taken by the majority shareholder of Engie SA, Romania Gas Holding B.V., to oppose the listing of the company, accordi...

1 Comment

Europe must become a producer of new technologies, not just a consumer of technologies, says EC

Europe must become a producer of new technologies, not just a consumer of technologies, said Gerard de Graaf, Director for the Digital Single Market in Directorate-General ...

1 Comment

FDI in Romania rises 10 per cent after ten months in 2018

Non-residents' direct investment in Romania (net FDI) totaled 4.56 billion Euro in January-October 2018, around 10 per cent more compared to the same period of 2017, Romani...

1 Comment