International banking regulationimplications for european banks

Internationalization of banking in europeLessons from Banco Santander

SusanacristinadawidCarloMarcelTobiasInternational Project Week 2012Presentation slide for courses, classes, lectures et al. 1structureBanking regulationEuropean banking sector in troubleLehman Brothers (2008)Reasons for the crisisChanges because of the crisisBanking internationalizationSteps of internationalization in Retail BankingBanco Santanders growth (1985-2005)Banks in comparisonNet Present ValueBeginning course details and/or books/materials needed for a class/project.2European banking sector in troubleDexiaFrance, Belgium, LuxembourgNorthern RockU.K.FortisNetherlands, Belgium, LuxembourgHypo Real EstateGermany

Beginning course details and/or books/materials needed for a class/project.3Lehman BrothersFirst bank not rescued by the governmentBeginning of the international financial problem

Beginning course details and/or books/materials needed for a class/project.4Reasons for the crisisSubprime mortgageRating agenciesFitchMoodysStandard and PoorsHighly complex financial productsMonetary policyInterest ratesGreedBeginning course details and/or books/materials needed for a class/project.5Changes because of the crisisBasel AccordsIncrease the level of capital and qualityIntroduce control over liquidityEuropean AuthoritiesEuropean Banking Authority (EBA)European stress testsIncrease in the level of deposit guaranteesBeginning course details and/or books/materials needed for a class/project.6Steps of internationalization in Retail BankingStep 1: Development capabilitiesStep 2: Creating optionsStep 3: Quick Roll-Out & implications

Beginning course details and/or books/materials needed for a class/project.7Banco Santanders growth (1985-2005) Net profit (EUR)Market capitalization (EUR)Number of costumers1985133 million2,455 million750.00020056,220 million69,735 million66 millionBeginning course details and/or books/materials needed for a class/project.8Banks in comparison (1985-2005) BankCountry Asset GrowthProfitInternational BusinessBanco SantanderSpain24%24%68%Deutsche BankGermany15%12%71%CitigroupU.S.13%15%41%Bank of America

U.S.14%24%6%Barclays

U.K.16%13%38%

Beginning course details and/or books/materials needed for a class/project.9Net Present ValueBeginning course details and/or books/materials needed for a class/project.10Net Present Value ExampleBeginning course details and/or books/materials needed for a class/project.11 the next one pleasegracias porsu atencin

Thank you for your attention

Danke fr eure AufmerksamkeitBeginning course details and/or books/materials needed for a class/project.12