European banks probably will not significantly increase its financing through bond markets in 2016 because of the need for restructuring and still depressed demand for credit by companies and households. It is reported Reuters, citing data from Dealogic. Weak outlook for this year after disappointing results from last year, when eurozone banks have issued bonds for 196 billion. Euros compared to 220 billion. In 2014
In recent years, banks in the region are trying to recover from the financial and debt crisis by selling assets, shrinking their balance sheets and reduce financing from capital markets.
“The majority of issuers indicated that their programs are fundraising market will expand from last year. This estimate is based on plans for the growth of balance sheets and refinancing of existing debt,” said Jeff Tannenbaum, managing director of Bank of America Merril Lynch.
In pre-crisis years, European banks regularly issue bonds for 300 billion. Per year. Last year’s level was the lowest since 2002, while the number of issuers has been the lowest since the beginning of the century.
“The most significant contraction already been made, but we can hardly expect a significant expansion of their balance sheets,” said Alberto Gallo, an analyst at bank RBS. According to him, the movements can be expected in the banking market are related to the pressure for consolidation on small and medium-sized banks. “We are in stagnation. To get out of it, we need significant restructuring,” it says.