European G-SIBs need a better RoE to justify a higher valuation

While the shares of Global Systemically Important Banks (G-SIBs) in Europe bounced today on the news that a buyer has been found for parts of the failed US lender, Silicon Valley Bank, their price/book (P/B) ratios are likely to remain depressed so long as they struggle to make a decent return on equity (RoE).

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.