Regulation to reshape bank funding

Regulatory change is exacerbating the funding problems faced by European banks and will contribute to rising costs. This comes at a time when European financial institutions and sovereigns need to roll over huge amounts of debt, and during increased concern about the fiscal position of eurozone countries.

European banks have approximately €700 billion in annual refinancing needs over the next three years, according to research from Deutsche Bank. However, May saw the weakest issuance volumes