Deutsche Bank has made an announcement to undergo restructuring worth $8.3 billion. Following the announcement, Credit Suisse analysts have confirmed that due to the restructuring of Deutsche bank, all the US banks will get a benefit. This will give a big boost to the US banks, which have already been showing a high dominance on the European banks over the last few years.
Due to this restructuring of Germany based Deutsche bank, there will be 18,000 job cuts by the year 2022. Analysts team at Credit Suisse, led by Susan Roth Katzke, expressed that the net market share for those banks with the scale and capacity to invest will get a consolidated share in the market. With the revolutionary technological changes in privatized banking in the US, deposit and loan availability has improved significantly. In today’s time, people are able to learn more about various financial services and terms online with just a click of some buttons.
Different types of financing options such as auto financing, home financing, and equipment financing have been available to the people. And the improvement in the financial wisdom of people has prompted them to take advantages of different services such as life insurance available at the banking institutions in the US.
Different American banks such as Bank of America, JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley will get benefit due to the dissolution of Deutsche Bank’s market share. Katzke along with his team estimated that the banks will get 5-10% of earnings-per-share growth in 2020 following the Deutsche Bank’s reshuffling.
Credit Suisse asserted that the investment banking market share will shift towards the US banks which is already a common trend in the last few years. And this will widen the gap between the US and European banks in the years to come.