European banks on the global stage
European banks showcased their strength on the global stage, with the average CET1 ratio of the largest banks surpassing their U.S. counterparts. This signifies a robust capital position and resilience in facing economic challenges. HSBC represents European banks among the world's largest financial institutions. In 2022, the UK-headquartered bank made it to the largest 15 banks worldwide based on market capitalization, with a market cap of 124.4 billion U.S. dollars.
Banking crisis: Nosedive in March 2023
The failure of Silicon Valley Bank (SVB) and Signature Bank in the U.S. in March 2023 sent shockwaves through the banking industry, triggering a ripple effect that extended to Europe when Credit Suisse faced a similar fate. As confidence in the banking sector crumbled, stock prices of the largest European banks fell sharply. Despite an uptick towards the end of March, stock prices still remained considerably lower than the prices observed at the beginning of the month.