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European G-SIBs need a better RoE to justify a higher valuation

While the shares of Global Systemically Important Banks (G-SIBs) in Europe bounced today on the news that a buyer has been found for parts of the failed US lender, Silicon Valley Bank, their price/book (P/B) ratios are likely to remain depressed so long as they struggle to make a decent return on equity (RoE).

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