Escalating war intensifies economic concerns, SRT sales costs may rise

The SRT issuance costs for European and American banks are expected to rise. Among them, for European banks, the ratio of costs to capital relief benefits is projected to increase from 11% in 2025 to 14% by 2027. Out of 36 surveyed banks, 24 believe that economic uncertainty will drive up SRT costs. More than two-thirds of investors see this as a factor prompting demands for higher returns.