Key topics
1. Global economic climate
- The global economic environment got worse as GDP growth rates and forecasts declined around the globe
- ECB support promote Western European sovereign CDS spreads significantly – decline of 50% within one quarter only
2. Key banking drivers
- In Q3 2012, market volatilities and uncertainties clearly calmed down – the euro recovered moderately
- The interbank funding situation improved considerably with positive effects on the banks’ margins
3. State of the banking industry
- Central bank support in Europe and the US boosts banks’ equity performances in these regions with double-digit TSR figures outperforming BRICS countries in Q3 2012
- Impact also visible on debt side as average CDS spreads of banks declined significantly and series of rating downgrades was brought to an end despite weaker economic conditions
