Cross-border European financial- services takeovers are unlikely to pick up in the next 18 months as regulatory change makes it harder for banks to allocate capital and tough market conditions persist, UBS has said.
Bloomberg reports that Basel III rules on bank liquidity and capital, combined with proposals from European Union officials last month that would put greater regulations on trading activities and bonuses, have created “uncertainties” for banks seeking deals, said Edouard de Vitry, co-head of financial institutions for Europe, the Middle East and Africa at UBS investment banking, said at a conference the bank organized in London Tuesday.
'Even the best European banks aren’t willing to commit capital to large acquisitions at the moment', said de Vitry. 'That’s not going to disappear before uncertainty of the regulatory landscape and progress of the euro zone is further established'.
Announced deals involving a European bank this year have dropped by more than a third to about $76bn, data compiled by Bloomberg shows.
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image: © Matthew Hine