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The expression “bigger is always better” may not apply to European commercial banks. A recent analysis measuring bank performance and profitability for different size categories revealed that small banks can be top performers, too. What matters more than size is how well a bank of any magnitude manages credit risks and operational costs. ....
As relations between the West and Russia deteriorate, the imposition of a complete trade embargo by Allies on Russia appears increasingly likely. Using computable general equilibrium modelling, this column explores the short- to medium-term economic effects of such an Allied trade embargo. It finds that Russia would likely sustain sizable losses of upwards of 14% of real GDP. ....
Banks continue to provide financing to fossil fuel firms that the bond market would not finance as long as they do not price the risk of stranded assets. In this setting, stranded assets risks may have shifted to large banks. ....