Data presented by Buy Shares indicates that 14 selected major global banks cumulatively lost $635.33 billion in market capitalization. The loss was majorly induced by the coronavirus pandemic between December 2019 and August 2020.
Central banks interventions cushions banks
Wells Fargo recorded the biggest slump with a percentage change in the market capitalization at -56.26% followed by Spain’s Banco Santander at -46.16%. JP Morgan Chase’s change in market capitalization was -30.16%. During the period, Japan-based Mizuho Financial Group had the least change at -11.33%.
Intervention by central banks cushioned most facilities from a further slump. According to the research report:
“The drop in valuations for the selected banks could have been much worse if there was no intervention from central banks. The immediate measures taken by regulators to ease restrictions on liquidity and capital, banks have proved beneficial. Although the measures put in place by authorities helped banks, they still face some immediate pressures on their capital and liquidity position, as the length and severity of the outbreak remain uncertain.”
An overview of the individual market capitalization shows that JP Morgan still holds a superior position at $437.2 billion in December 2019 and $305.44 billion as of August 2020. In December last year, Wells Fargo market cap stood at $227.5 billion and in August it stood at $99.5 billion.
At the end of last year, the Bank of America market cap stood at $316.8 billion and by the end of August, the figure stood at $223.01 billion.
he full story, statistics and information can be found here: https://buyshares.co.uk/global-largest-banks-lose-635bn-in-market-cap-amid-pandemic-wells-fargo-santander-biggest-losers/