The Economist: Finance and economics articles summarised (7th April 2019)

European banks are struggling
Aside from a few notable examples including Lloyds and ING. The return on equity of 190 European Union banks was 6.5% in 2018, see chart below. This is not enough, the minimum for shareholders is 9-11% and compared to American banks it is pitiful, where the biggest manage well over 10% (although Citibank came in with 9.4%). This all started with the financial crisis, American banks were forcibly recapitalised with the Troubled Asset Relief Programme (“they got TARPED”). The euro area was slow to react as there was no single supervisor . . .

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