Proactive Investors - Lloyds Banking Group PLC is still a top pick for Citigroup, which sees the Silicon Valley Bank (SVB) collapse having a “very limited” read across to the European banking sector.
Analyst Andrew Coombs said that European banks have “less deposit concentration, are still seeing relatively healthy deposit flows, operate with large liquidity portfolios, and remain capitalised”.
Coombs also said he sees “less risk to capital in the event that balance sheet positions in negative carry do have to be crystallised”.
SVB entered administration over the weekend and was facing billions in unrealised losses.
This morning, HSBC confirmed it agreed to buy the UK arm of SVB.