Securities market frenzy drives up mid-sized European banks' systemic risk
Nordea’s underwriting activity jumped by almost 7,000% in 2020
Frenzied underwriting activity and demand for securities supercharged European banks’ systemic risk gauges over the course of 2020, with some regional lenders now rivalling too-big-to-fail incumbents in terms of footprint, data from the European Banking Authority (EBA) shows.
At the bloc’s eight global systemically important banks (G-Sibs), total holdings of trading and available-for-sale (AFS) securities – one of 12 systemic risk indicators used by the Basel Committee on Banking Supervision –
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