| European banking profitability is set to worsen as falling commodity values weaken loan books and central bank actions from China to the U.S. cause economic uncertainty, according to analysts at Berenberg Bank.
"Developments in commodity markets matter for banks, given what they tell us about economic growth and the implications for asset quality,” Berenberg analysts Nick Anderson and James Chappell said in an note dated Sept. 29. “The financialization of commodities (their widespread use as collateral) underpins asset-quality concerns.”..............................................Full Article: Source
|