What the SVB Collapse Means for European Banks

Shares of many European lenders are down sharply after Silicon Valley Bank's collapse. Morningstar analyst Johann Scholtz and strategist Michael Field explain what knock-on risks these companies really face. 

Lukas Strobl 13.03.2023
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Key takeaways:

- European banks' ample cash positions and more diversified funding sources clearly differentiate them from SVB
- Sharp declines in banking stocks reflect fear of rising systemic risk, pushing up borrowing costs for banks
- Psychological scars from Lehman's 2008 collapse, combined with European banking stocks' recent rally are likely spurring investors' exit

(Full transcript to follow.)

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Valeurs citées dans l'article

NomValeurVariation (%)Notation Morningstar
Banco de Sabadell SA1,31 USD1,55
Commerzbank AG10,88 EUR1,07
SVB Financial Group0,11 USD10,00

A propos de l'auteur

Lukas Strobl  est directeur éditorial pour la région EMEA chez Morningstar