European banks remain in the driver’s seat

There are still big differences between the US and the Old Continent on how corporates source their financing. This has not materially changed since the financial crisis in 2008. European corporates remain indeed largely dependent on bank financing representing 75% of their loan book. Investment grade bonds are issued by some but high yield bonds remain more the exception than the norm. Conclusion is that banks remain in the driver’s seat in Europe in relation to the corporate sector.