Dr. Hendrik Garz, Claudia Volk and Others
HIGHLY COMMENDED FARSIGHT AWARD 2014/15 - After the drawdown in 2011, investors have been quite pleased with their investments in European and North American bank stocks. At the end of May 2014, their share prices had risen by more than 70% since the beginning of 2012, clearly outperforming market benchmarks. The pendulum of investor sentiment has swung back impressively after seeing the sector standing on the edge of an abyss. Regulatory changes continue to impose high direct costs and constrain banks’ profitability. Many investors now fear that price corrections may lie ahead in light of the still significant risk of negative news flow in the coming months.
This report provides an overview of the potential sustainability and business impacts of five key ESG issues for the banking sector: