Finance
Moody's sees improved outlook for banks in France, Germany and elsewhere
Published by Global Banking & Finance Review®
Posted on March 12, 2025
1 min readLast updated: January 24, 2026
Quick Summary
Moody's upgraded the banking outlook for France, Germany, and others to stable, citing economic recovery and low interest rates despite geopolitical risks.
Moody's Reports Stable Outlook for European Banks
FRANKFURT (Reuters) - The credit ratings agency Moody's said on Wednesday that it deemed the outlook for banking sectors in France, Germany, Sweden, Belgium and the Netherlands as "stable", an improvement from an early "negative" outlook.
The ratings agency said risks continue as a result of geopolitical tensions, including tariffs.
But the outlook in major banking markets is "now stable, on the back of a lackluster but sustained cyclical economic recovery, bolstered by lower interest rates and stable unemployment," said Effie Tsotsani, a Moody's analyst.
(Reporting by Tom Sims, editing by Thomas Seythal and Madeline Chambers)
Key Takeaways
- •Moody's upgraded the banking outlook in several European countries to stable.
- •The previous outlook was negative due to geopolitical tensions.
- •Economic recovery and low interest rates support the stable outlook.
- •Risks remain from geopolitical tensions, including tariffs.
- •Major markets like France and Germany are seeing stability.
Frequently Asked Questions about Moody's sees improved outlook for banks in France, Germany and elsewhere
1What is the main topic?
The article discusses Moody's improved outlook for the banking sectors in several European countries.
2Why did Moody's improve the outlook?
Moody's cited a sustained economic recovery and low interest rates as reasons for the stable outlook.
3What risks do banks still face?
Banks continue to face risks from geopolitical tensions, including tariffs.
