Diagnosing what ails Europe’s biggest banks

European banks are carrying a tough time creation money.

Three European giants – Credit Suisse, Deutsche Bank, and Royal Bank of Scotland – any racked adult billions of dollars in waste in 2015 .

European bank bonds are down an normal of 18 percent this year as of Mar 1, compared with a detriment of 7.4 percent for a Stoxx Europe 600 index.

The some-more a bank’s business has been saved with equity, or capital, a safer it is from going bust.

By one measure, a collateral of a tip U.S. banks averages 6.6 percent of sum assets, compared with 4.5 percent for a biggest European banks.

Two of France’s largest banks, BNP Paribas and Societe Generale, have collateral of usually 4 percent of sum assets. Deutsche Bank sits during a bottom of a list of Europe’s vast banks, with 3.5 percent; the shares are down about 22 percent in 2016 so far.

Deutsche Bank bought a sell bank in 2010 to improved contest opposite Germany’s 409 assets banks and 1,047 mild banks.

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