How banks benefit from ECB policy


Dhe policy of the European Central Bank (ECB) and other central banks is increasingly becoming a profitable business for European banks. Rising interest rates around the world are already showing in their books. You can also bring in high risk-free returns via a favorable credit program from the ECB.

The 34 largest banks in Western Europe were able to increase their net interest income by an average of 10 percent in the first half of the year, according to a study by the rating agency Moody’s. The most important German institutions such as Deutsche Bank, Commerzbank and DZ Bank increased their net interest income in the first half of the year by an average of around 15 percent compared to the previous year. The gains for Austrian banks are even greater. According to Moody’s figures, Erste Group and Raiffeisen Bank International even earned 23 percent more from their interest business than in the previous year.

In the first half of the year, the banks were able to benefit above all from the fact that the central banks in Eastern Europe, Great Britain and the United States increased their Interest charges elevated. This played into the hands of Commerzbank, for example, with its Polish subsidiary MBank, or the Austrian banks, which are traditionally well represented in Eastern Europe.

Interest income should continue to grow

The European Central Bank started raising interest rates later. The analysts at Moody’s therefore expect that interest income will continue to grow significantly. So said the ECB President Christine Lagarde only on Monday in front of the European Parliament: “We assume that we will raise interest rates further in the next few sessions in order to dampen demand and to protect ourselves from the risk of a sustained upward movement in inflation expectations.”



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