The European Banking Authority (EBA) sees European banks as well-positioned despite current tensions due to US tariff policies and financial market turbulence. This assessment is crucial for private investors and savers as it strengthens confidence in the resilience of the financial system.
Background of US Tariff Policy
The USA, under President Trump, has pursued an aggressive tariff strategy, including new semiconductor tariffs and special levies on Chinese imports of up to 145%. These measures destabilize global supply chains and increase costs for companies – also in Europe. Economists like Kenneth Rogoff warn that Trump’s policy threatens the “dollar privilege” that has previously assured favorable refinancing opportunities for the USA.
Effects on the Financial Market
- Risks for Export-Dependent Sectors: German automobile manufacturers could come under pressure due to trade conflicts between the USA and China, as China simultaneously wants to reduce EU special tariffs.
- Volatility: Protectionist measures could, according to UniCredit Bank Austria, reduce the economic output of individual EU states by up to 0.25%, which indirectly increases credit risks.
EBA’s Assessment of Banking Stability
Although no direct statements from the EBA are quoted in the available sources, the following factors indicate a robust position:
- Capital Buffer: European banks have maintained higher equity ratios since the financial crisis.
- Diversification: Dependence on the US market is limited – focus areas are the domestic market and Asia.
- Regulatory Framework: The EU has strengthened crisis prevention with instruments like the Single Supervisory Mechanism (SSM).
For investors, this means: Short-term market fluctuations due to trade conflicts are unlikely to endanger systemically relevant institutions – however, long-term vigilance is required in light of geopolitical risks.