Following up on last month’s piece, we’re going to put the theory to numbers with an example to illustrate the impact of capital rules and the various levers they apply on bank stocks. After that, we’ll look at a couple of European bank stock ideas. If you didn’t read the last post, I recommend you do that first.

Published on March 26, 2021 Time is a bit warped in the COVID-continuum. Still, some of us may remember a little less than a decade ago when European financial stability occupied major headlines for what seemed like an interminable amount of time. Bank stocks there were going to implode, and Europe could not get out of its own way to stop them.  Amidst increasing regulatory and product complexity,…