/ / European banks: fallen status and loss of profits

Banks of Europe: the fallen status and loss of profit

Everyone strives for comfort and completesecurity. In this case, the safety of property and cash takes a priority position. Most people trust depositing their savings to banks. The main difference between the financial institutions chosen for deposits is territorial location. If the majority of clients choose national organizations, the remaining small group prefers credit organizations, the status and image of which is confirmed by years, even centuries of work. These are primarily the banks of Europe.

"Gentlemen" from the Old World

banks of Europe

These organizations are the oldest in allthe global space of credit and financial institutions. For a long period of time, the institutions of Switzerland were considered among the “strongest” and best banks. At this stage, stable and productive banks in Europe include in their list of institutions located in other countries. It is noteworthy that the institutions of the Old World have a significant influence on the development of the global sphere of financing, investment and lending. The reason for this is the unification of European countries under the auspices of the European Union. The introduction of a single currency made it possible to more effectively consider proposals for injecting cash flows into projects of various countries. And with varying success to manipulate refinancing indices. Ultimately, due to the “game” with international lending rates, many European banks are “under the blow” of the antimonopoly committee. This commission is going to apply large financial sanctions to many credit institutions.

German "games"

Due to manipulation of refinancing ratesThe high-ranking Deutsche Bank (Germany) is forced to postpone to the proceedings about 1 billion 200 thousand euros. And this is just for the first hearing. JP Morgan Chaise, HSBC and many others also shared the sad fate of this organization. The European Union Anti-Monopoly Committee accuses these institutions of manipulating the Libor rate (London Interbank Offer Rate). The result of this grandiose story was a fine of two and a half billion euros.

Deutsche Bank Germany

Not recovering from the shocks experienced, Germanthe bank was again involved in the second scandal. This time, the commission found violations in the process of setting the average funding rate for Euribor. To put it simply, this index shows the percentage under which European banks lend money to each other for a certain period. This refinancing tool is also called the international bid rate.

In this case, the scandals flared up around thisThe questions adversely affected the total income of the institution. Compared to the previous year, the net profit of Deutsche Bank decreased 15 times and in the penultimate quarter amounted to just over 50 million euros.

Sad "ally" from Switzerland

Member of the sad events about the "game" withLibor is also a well-known UBS-bank (Switzerland). Having paid a huge fine, the organization “closed” 2012 with a deep minus of 1.7 billion euros. 2013 turned out to be more successful in the activities of a financial institution. Although the bank turned the work into a profitable channel, the planned 15% profitability, alas, was not received.

ubs bank switzerland

Many financiers will undoubtedly agree that forthe entire world economy, the banking “games” of the institutions of the Old World cannot end with anything good: organizations, depositors, countries and continents suffer losses. Many credit institutions are at risk of ruin.