This 2016, European banks are awaited to secure some funding from the bond market, implying continual lower demand for loans from companies and consumers.
The dull outlook follows a disappointing year for bond sales by banks in the eurozone. According to Dealogic, issuance stood at €196 billion ($211 billion) in 2015, excluding covered bonds, from €220 billion ($236 billion) in 2014.
European banks, affected by financial and sovereign debt crises, have ditched assets, reduced their balance sheets, and scaled back on borrowing from capital markets.
Before the crises, the amount issued regularly exceeded €300 billion. Other than 2012 and 2013, last year’s €196 billion signified the lowest level of issuance since 2002.
The material has been provided by InstaForex Company – www.instaforex.com