Mohamed Yahya
The start of 2022 was the best ever for European bank stocks, Bloomberg wrote. According to its information, securities of the banking industry rose more than others represented in the Stoxx Europe 600 stock index. The value of shares increased by 10 per cent, with the value of securities rising for nine consecutive days - the longest period since 2018, the agency claimed.
Shares in all 38 banks represented in the index increased in value compared with the end of 2020. Societe Generale SA doubled in value, Spain's Banco de Sabadell SA rose 87% and ING Groep NV rose 77%, Bloomberg said.
Bloomberg believes that the reason of appreciation of banks shares lies in the toughening of monetary policy of central banks - first of all, US Federal Reserve System. It led to an increase in bond yields, and this in turn allows banks to get more profit from the loans provided, says the newspaper. At the same time, the volume of lending to consumers and businesses will grow as the economy recovers, the agency noted.
source: bloomberg.com
Shares in all 38 banks represented in the index increased in value compared with the end of 2020. Societe Generale SA doubled in value, Spain's Banco de Sabadell SA rose 87% and ING Groep NV rose 77%, Bloomberg said.
Bloomberg believes that the reason of appreciation of banks shares lies in the toughening of monetary policy of central banks - first of all, US Federal Reserve System. It led to an increase in bond yields, and this in turn allows banks to get more profit from the loans provided, says the newspaper. At the same time, the volume of lending to consumers and businesses will grow as the economy recovers, the agency noted.
source: bloomberg.com
