Deutsche Bank (DBKGn.DE) and Barclays (BARC.L) led European bank stocks on Monday to their highest for nearly three years after regulators watered down new rules aimed at strengthening banks but which could have limited their ability to lend.
Sunday’s decision by the world’s top central bankers was aimed at trying to avoid restricting financing for the global economy, and was seen as a positive for banks, especially those with big investment banking arms.
The easing of the rule, after lobbying by banks, is the latest sign of how regulators have become more willing to accommodate lenders as the focus switches to helping economic recovery.
The STOXX Europe 600 Banking index .SX7P was up 1.4 percent at 205.2 points by 1100 GMT, its highest level since April 2011 and extending this year’s rally to 6 percent. The index is up 26 percent since the start of 2013.
Shares in Deutsche Bank and Barclays were each up more than 3 percent, and UBS (UBSN.VX), Unicredit (CRDI.MI) and Royal Bank of Scotland (RBS.L) were each up more than 2 percent.
