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The Wide Angle – European banks: shareholder-value creators or quasi-public utilities?
The market continues to assess banks primarily from the angle of shareholder value-creation, focusing on traditional prudential and risk-return indicators. This needs to be revisited.
The large European banking groups in the post-pandemic age have become hybrids of private-sector institutions with quasi-public roles and priorities. This characteristic is holding true during the energy and inflation crisis in Europe.
Read the latest The Wide Angle where Sam Theodore sets out the limits of the shareholder value-creation approach and lays out how banks create value beyond the interests of their shareholders.
Read the full report here.