Despite reassurances from EU leaders that Eurozone banks are strong and stable, the reality of the markets paints a different picture. Deutsche Bank’s shares dropped 15% during a recent EU summit, with the fall attributed to a rise in credit default swaps. Other European banks, including UBS, Commerzbank, Société Générale and BNP Paribas, were also affected. The banking union, which includes harmonised rules and supervision allowing the prevention of the use of taxpayers’ money, remains incomplete as negotiations have stalled. However, Paschal Donohoe, president of the Eurogroup, insists European banks are resilient and strong despite market fluctuations.
