Global

European Banking Federation urges immediate regulatory simplification to unlock EU banking competitiveness.

MCB Group highlights continental growth potential despite persistent funding gaps and policy divergence.

Global banks are heading into 2026 preparing for a tougher credit environment and weaker profitability, according to McKinsey’s latest Global Banking Annual Review. 

Deutsche Bank is on the verge of finalizing a significant €1 billion synthetic risk transfer (SRT) transaction with the European Investment Fund, marking a major step in risk management and capital optimization for one of Europe’s largest financial institutions. The SRT deal is anticipated to allow Deutsche Bank to free up capital and better manage its credit exposure, a move that bolsters resilience in a fluctuating global economy. The European Investment Fund will assume a slice of risk from over €10 billion in corporate loans, supporting more stable balance sheets for the German lender while incentivizing continued lending to the real economy. The agreement points to increasing private and public sector cooperation in broadening access to capital and ensuring liquidity remains robust amid evolving regulatory requirements. Market analysts view the transaction as a sign of strengthening risk management frameworks in the eurozone banking system.

Italy’s leading banks have voiced strong backing for the digital euro, but caution that its rollout should be phased to help offset the substantial cost of transition and integration into daily banking operations. Italy’s banking sector, represented by major associations, supports the European Central Bank’s (ECB) pilot to create a digital euro as a secure, widely accessible form of money. Bank executives argue that costs tied to IT upgrades, staff training, and customer engagement could burden institutions if introduced too rapidly. They call for a gradual adoption strategy, wherein expenses can be managed over several years, preventing disruption to current services and business models. Analysts believe the digital euro could enhance transaction efficiency and cross-border payments but stress the importance of careful planning to sustain trust and stability in Europe’s banking landscape.

Europe’s banking sector is outperforming US counterparts this quarter as investors flock to high-yield assets and subordinate bank debt, buoyed by stable monetary policy and robust systemic fundamentals.

South Africa is phasing out the Johannesburg Interbank Average Rate (JIBAR), a benchmark that has underpinned the country’s floating‑rate loans and derivatives markets

Spanish banking giant Banco Santander has been named “Bank of the Year” for Europe by The Banker magazine

European banks are ending 2025 in better capital and liquidity shape than they were a decade ago, yet supervisors are sounding increasingly concerned about what a “higher‑for‑longer”

The Central Bank of Ireland has issued a warning about the changing nature of fraud threats facing the country’s financial institutions, following new cases involving crypto firms and advances in online scam techniques. Recent enforcement actions include strong sanctions on a crypto firm for failures in anti-money laundering (AML) compliance, underscoring banks’ responsibilities in vetting new entrants to the financial system. The bank also highlights an uptick in ‘deepfake’ and social engineering scams, urging both banks and consumers to be vigilant. Regulatory bodies are working closely with law enforcement and technology platforms to develop countermeasures, while emphasizing the importance of customer education and cross-border collaboration.

The European Central Bank (ECB) has announced that banks’ climate risk management and sustainability credentials have become crucial factors in evaluating creditworthiness in the euro area. In its latest guidance, the ECB underscores that climate-related financial risk will directly influence how euro area banks are assessed for access to central bank credit. Institutions making progress on emissions reduction and green financing will have greater access to funding, while laggards could face tougher borrowing conditions. The ECB’s move aligns with broader EU climate goals and is expected to incentivize integration of environmental risk analysis within European banking strategies, promoting a shift to greener investments and project financing.

Europe’s banking sector is outperforming US counterparts this quarter as investors flock to high-yield assets and subordinate bank debt, buoyed by stable monetary policy and robust systemic fundamentals. With ECB policies offering clarity and commitment, European banks have delivered a 45% gain in equity year-to-date. Investors are drawn by high-quality subordinated debt offerings, which provide better risk-adjusted yields than US counterparts. Europe’s banking system, seen as structurally sounder than in previous years, is also benefitting from renewed global investor confidence in light of ongoing US political and monetary uncertainty. The sector’s current momentum reflects broader economic optimism and continued trust in regulatory stewardship in the Eurozone.

Italy’s leading banks have voiced strong backing for the digital euro, but caution that its rollout should be phased to help offset the substantial cost of transition and integration into daily banking operations. Italy’s banking sector, represented by major associations, supports the European Central Bank’s (ECB) pilot to create a digital euro as a secure, widely accessible form of money. Bank executives argue that costs tied to IT upgrades, staff training, and customer engagement could burden institutions if introduced too rapidly. They call for a gradual adoption strategy, wherein expenses can be managed over several years, preventing disruption to current services and business models. Analysts believe the digital euro could enhance transaction efficiency and cross-border payments but stress the importance of careful planning to sustain trust and stability in Europe’s banking landscape.

Deutsche Bank is on the verge of finalizing a significant €1 billion synthetic risk transfer (SRT) transaction with the European Investment Fund, marking a major step in risk management and capital optimization for one of Europe’s largest financial institutions. The SRT deal is anticipated to allow Deutsche Bank to free up capital and better manage its credit exposure, a move that bolsters resilience in a fluctuating global economy. The European Investment Fund will assume a slice of risk from over €10 billion in corporate loans, supporting more stable balance sheets for the German lender while incentivizing continued lending to the real economy. The agreement points to increasing private and public sector cooperation in broadening access to capital and ensuring liquidity remains robust amid evolving regulatory requirements. Market analysts view the transaction as a sign of strengthening risk management frameworks in the eurozone banking system.