A note via JP Morgan on the US banking crisis and its lack of spillover into Europe.
I thought this was hashed out already? Maybe not.
Anyway JPM says
stresses due to the regional banking crisis in the US is unlikely to affect the Euro zone
European banks haven't yet experienced any major negative effects from the liquidity problem that hit the US, citing:
- Euro zone banks have “stickier deposits”
- Euro zone banks have smaller downside risk for “unrecognized market-to-market losses.”
- Euro area banks, while less profitable than banks in the US, score more highly "on several measures of solvency, liquidity and funding stability"
