This content is reserved for clients only. Login Now

Register now for a free trial to gain access to this piece and see how
you can benefit from an RGE subscription.

Finance and Banking

Can European Banks Support Growth?

By Jennifer Kapila

Although European banks are “sufficiently” capitalized assuming a 9% core Tier 1 (CT1) ratio threshold, such a conclusion is meaningless. Banks need surplus capital—more so in recessions, which tend to inflate risk weights of new lending—to actively provide credit to the real economy.

Register for a Free Trial