The market value of the world's 100 largest banks decreased by 300 billion euros ($ 355.7 billion) in the third quarter of 2020, from 4.1 trillion euros last June to 3.8 trillion EUR in September. This is according to BuyShares data provided by Arabiya Net.
The continuing uncertainty in the global economy due to the Coronavirus, the decline in interest rates, and new allegations about money laundering have led to renewed pressure on the banking sector, leaving the largest The world's banks are far from the recent boom in capital markets.
In the first quarter of 2019, the market value of all the world's banks reached nearly € 7.1 trillion, according to BankingHub data. By the end of last year, the value had increased by 7% to 7.6 trillion euros.
However, the Corona epidemic dealt a major blow to the global banking sector, which led to a 30% decline in the market value on an annual basis by the end of March to 4.9 trillion euros, It reached the lowest quarterly level since the global financial crisis in 2008.
Months later, banks returned to recovery, raising their capital to 5.3 trillion euros by the end of June, then fell to 5.2 trillion in September, representing a 27.5% decline on Annual basis.
and BankingHub data show that the market capitalization of the 100 largest banks reached 5.6 trillion euros in December 2019, but soon declined by 30% to 3.9 trillion euros in March. When Corona hit the markets, then Corona deepened losses to reach a new low of 3.8 trillion euros, which represents a 28% year-on-year decline.
The data also showed that the return on equity in the 100 largest banks around the world was the lowest among all economic sectors in the third quarter of 2020, after declining by 1.7% On a quarterly basis, compared to the performance of the technology sector, whose return on equity grew by 13.4% during the same period.
