European Banks Struggle With Low Interest Rates and Strict Regulations

Banks in Europe have been in a difficult spot lately. A new report reveals that financial institutions across the region faced serious difficulties in the 2018 financial year, and despite all the cost cutting that followed, haven’t managed to compensate the revenue decline in 2019. Historically low interest rates, new regulatory hurdles and competition from U.S. banks have all added to the hardship.

Also read: Another Bank Run Highlights China’s Brewing Financial Crisis

Corporate and Investment Banks See Declining Revenues

The financial industry in Europe is facing some fundamental constraints such as cost inelasticity, revenue decline and talent evasion. The European CIB Outlook 2019, a study published recently by the consulting firm Eurogroup Consulting, is centered on how the continent’s corporate and investment banks (CIS) can address these challenges.

Other threats they have to deal with stem from the economic and regulatory environment,…