European Banks Prepare for Renewed U.S. Competition
European banks are facing increased competition from U.S. banks as a potential second Trump presidency could lead to financial deregulation in the U.S., benefiting American banks with tax cuts and relaxed regulations. This contrasts with Europe's strict oversight and low-interest rates, making it harder for European banks to compete. While some European banks have started to recover, the expected U.S. policy changes could widen the earnings gap further, prompting European banks to lobby for regulatory easing in Europe.