Competition for customers and investors will become much tougher in future, and at the same time more international. Global regulation and European supervision will level the playing field on an international scale. German banks are therefore increasingly being forced to face international competition. And an international comparison shows that German banks do indeed have catching-up to do with respect to profitability.
All told, the Federal Reserve purchased $ billion of Treasury securities and will conclude purchases of $ trillion of agency MBS and about $ billion of agency debt at the end of this month. The Federal Reserve’s purchases have had the effect of leaving the banking system highly liquid, with U.S. banks now holding more than $ trillion of reserves with Federal Reserve Banks.