Restructuring is not enough to make the French and German banking sector look an attractive investme...
Restructuring is not enough to make the French and German banking sector look an attractive investment. Recently, the way was apparently left clear for BNP to take control of Paribas but this kind of consolidation is unlikely to solve the inherent structural problems in the sector, managers believe. In addition, expectations of interest rate rises have led managers to assume a squeeze on lending margins and to underweight portfolio positions in the sector. Alister Hibbert, fund manager at INVESCO, says: "German and French banks have got structural problems and will struggle with the emerg...
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