From Dow Jones & Company:

15 years after the global financial crisis, U.S. and European banks are facing differing political reputations. U.S. banks are against Basel 3.1 capital reforms, while European countries have implemented targeted tax regimes. The U.K. has maintained a special bank levy and recently eliminated the restriction on bonuses for bankers, making them more attractive to recruits. On the other hand, European banks remain unloved in the EU, and with upcoming elections, it’s unlikely that they will gain any favorable treatment. The U.K. continues to attract U.S. banks while EU banks struggle. Europe needs a competitive banking system, determined by rational analysis. With economies still recovering from COVID-19 and geopolitical tensions, it’s crucial to create an environment conducive to growth.

Source: Project Syndicate



Read more: Opinion: U.S. banks are gaining in Europe and their stocks top European and U.K. rivals