Fear of debt drives up the cost of banking capital
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European banks' cost of capital has risen to 12% from 11% in the last month, according to FactSet. Santander has a cost of capital of 12.4% and BBVA has 11.6%. The increase in the French 10-year bond yield above 5% has raised concerns about a possible contagion risk to other European countries' debt. The cost of capital for European banks has historically ranged from 8% to 18%, and experts currently do not foresee a worsening of the situation.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
