Of Special Interest
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- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
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- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
14th August 2020
Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
Data presented by Buy Shares indicates that the market capitalisation of the global banking market dropped by 30.32%. The drop was recorded between Q4 2019 and Q2 2020.
According to the data, the market cap during the last quarter of 2019 was $8.97tr while during Q2 2020, the figure stood at $6.25tr.
The biggest plunge in the market capitalisation was recorded in the middle of the coronavirus pandemic between Q4 2019 and Q1 2020 at 91.3%. Notably, the market cap recorded in Q1 2020 at $5.78tr was lowest since Q1 2016.
Elsewhere, the highest cap was registered during Q4 2017 at $9.32tr.
The pandemic has impacted most lending facilities' profitability especially with many bad loans being written off. According to the Buy Shares report "Despite mitigation measures in place, the pandemic has raised the credit risk for most banks. The economic uncertainty resulting from the health crisis has a meaningful impact on the real economy, and a slump in economic activity raises banks' loan losses."
The research also overviewed the top and lowest Total Shareholder Return(TSR) performance among Western European banks as of April 2020 to June 2020.
The data shows that Dutch-based ING GROEP had the highest returns at 29.6%. Only five top Western European banks had positive returns.
Meanwhile, HSBC Holdings had the worst returns at -16.7% while Standard Chartered registered returns of -1.3%.
Detail at: https://buyshares.co.nz/2020/08/13/global-banking-market-capitalization-slumps-by-over-30-amid-pandemic/