The world economy entered the COVID-19 pandemic with record debt levels. Since the global financial crisis, private and public debts have grown to more than $250 trillion, about three times global GDP. With the current crisis, global debt will surge even further. This has deep implications for the way our economies, societies, and politics work. In this episode, we will explore the current situation and the outlook for European banks in and after the pandemic, default risks and potential losses in loan and bond markets and the effects of an overhang of debt on corporate balance sheets and future investments.

Our next Short Cut will be hosted in partnership with the INET webinar series “Debt Talks”. Join us for a fascinating discussion with Martin Arnold (Frankfurt Bureau Chief, Financial Times), Elena Carletti (Professor of Finance, Bocconi University) and Richard Vague (Acting Secretary of Banking and Securities, Commonwealth of Pennsylvania; Chair, The Governor’s Woods Foundation). Thomas Fricke will be moderating the session together with INET Fellow and our academic partner Moritz Schularick (Professor of Economics, University of Bonn).

 

To Be Discussed

  • Why are European banks in much worse shape than their American counterparts? What’s driving this, and what can be done about it?
  • Are Europe’s financial institutions in a position to support the recovery, or is the worst still to come?
  • What should Europe’s banking landscape look like in 10 years?