Axiom says Deutsche Bank illustrates European banks trouble

Deutsche Bank’s current turmoil is the epitome of the European banking sector troubles, said Gildas Surry, senior research analyst at Axiom Alternative Investments and manager of the Axiom European Financial Debt fund.

He assessed the sector went through crisis unscathed but got caught in the complexity of European regulations and the unpredictability of US litigations.

According to Surry, German banks are the losers of the ECB’s quantitative easing.

“QE imposes negative rates and flat yield curves on banks. Transformation activity from deposits to lending becomes less profitable,” he commented.

Axiom’s manager compared Deutsche Bank to a long distance runner whose steps trip on the finish because the organisers haven’t been able to organise themselves.

“High time European regulators defended their banks rather than competing between themselves to always ask more from the banks,” he concluded, assessing that European banks were sacrificed on the altar of regulations.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

Read more from Adrien Paredes-Vanheule

Close Window
View the Magazine

You need to fill all required fields!