Securing sufficient funding is the greatest challenge facing European banks. A lasting effect of the financial crisis has been the disruption to the flow of cheap wholesale funding and recent market turmoil and sovereign fears have further contributed to this growing issue.
The banks' ability to raise long-term senior unsecured funding has been hit by market conditions, and the medium term outlook is for sharply tougher refinancing requirements (especially in light of regulation, which requires net long-term funding raising of EUR 2.7TN) and continuing rising costs through to at least 2018.
We surveyed fixed income investors to discover their current views, prognoses and cost expectations for a range of bank funding instruments. In our report, The State of European Bank Funding, we present the results of this survey, together with our assessment of current and future trends in bank's demand for funding and the implications of this for banks and policy makers.
