Copying and distributing are prohibited without permission of the publisher
European banks: A lesson in history
20 June 2012
What is most surprising about the latest economic downturn is its impact on European lenders and particularly French banks, writes Siqalane Taho.
Read more:
BNP Paribas
Societe Generale
Natixis
CA-CIB
It is so tempting to say the industry has seen it all before. The exit of Japanese capital from aviation in the early 1990s after the housing loan debt crisis sent the aviation industry reeling. The market had grown fond of cheaper funding offered by Japanese investors. This was short-lived, however. Margins rose and the market was again thrust into a recession.
A decade later the September 11 2001 terrorist attacks on the US again brought back the reality of downturns. As recession returned many banks made their way out of aviation. In particular, German banks this time either left the market or significantly scaled back their financing operations.
But the upward shift in margins and the exit of bankers from aviation was soon reversed in 2003. Liquidity returned and once again the market was awash with cash.
The leaders of the pact were of course the European banks and...
Take a free website trial to view this article. It's easy to get a trial - just follow this link or email sbains@euromoneyplc.com.
Alternatively, if you're already a subscriber or have a trial, simply log in below to read the article.
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
