Eurozone | Banks dodge Covid bullet, but vulnerabilities remain

The banking sector has proved resilient during the pandemic, and eurozone banks will continue to play a significant role supporting the near-term recovery. That said, a sustained virtuous cycle between banks and the economy looks unlikely in our view.

What you will learn:

Eventually, eurozone banks will have to deal with long-lasting weak profitability.
Sector fragmentation means cost efficiencies remain limited, while revenue prospects are constrained by low interest rates and a relatively flat yield curve.
Corporate fragility remains high in the sectors more heavily impacted by the pandemic.

Topics: Risk, Equity, Europe, Eurozone, ECB, Euro, Coronavirus, Banking, Recovery, Macroeconomics, Outlook, Omicron