Largest European banks in 2022, by CET1 ratio
Among the largest 15 banks in Europe, Crédit Mutuel had the largest common equity tier 1 (CET1) ratio in 2022, standing at 17.8 percent. Crédit Agricole followed closely behind with a CET1 ratio of 17.6 percent. Capital requirements for European banks were raised after the Basel III accord and phased in on the 1st of January 2015, with a new minimum requirement of CET1 ratio of 4.5 percent. In 2022, the CET1 ratio of the EU banking sector dropped sharply but remained well above the minimum requirement.
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.
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.
