Amid plunging share prices,the gargantuan names enter this reporting season haunted by memories of 2008. But are things really that snide?Fears that the banking sector is facing a current onslaught of pressures dominated markets final week. Global bank shares were sold off – the index of major banking shares in the UK at one point hit its lowest levels since the depths of the recession – and questions were being asked about the impact of low interest rates amid concerns about the possibility of a global economic slowdown.
While much of the focus was on gargantuan banks in the eurozone – Deutsche and Société Générale – analysts pointed out that the share prices of UK banks were already pricing in another global financial crisis when it hadn’t even happened. So when the UK’s major players reveal in the coming weeks how they have fared in 2015, they will be doing so in the most febrile atmosphere since the Lehman Brothers collapse seven-and-a-half years ago. Analysts will be looking for confirmation that another 2008-style crisis is not about to the grip the sector.
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Source: theguardian.com