We're now dividing banks into peer groups, comparing sytematically important banks separately from regional banks, says Erin Davis.
While the consequences are broadly negative for the sector, today’s stronger financial system means we don’t foresee a crisis.
We think the potential losses are manageable for most of the U.S., Canadian, and European banks we cover.
The Bank of England's new countercyclical capital buffer shouldn't affect valuations, however.
Generally overblown fears of energy-related credit losses, global deflation, and potential interbank contagion are increasingly weighing on the sector.
We see investment opportunities in the highest-quality stocks.
Royal Bank of Scotland's retail businesses and ability to generate capital make it an attractive option, while the remainder of its legal liabilities are already priced in.
The bank is turning the corner, and we don't think investors appreciate its potential.
Diversified insurance and property-casualty are particularly attractive in a sector that looks slightly undervalued overall.
We've undertaken a more detailed analysis of the systems in which banks operate and the 'moatiness' of their fee-earning businesses.
Investors are overly concerned about the potential impact of falling oil prices and turmoil in Russia on the banks that we cover.
Investors have overreacted to the impact falling oil prices and turmoil in Russia will have on banks, says Morningstar's Erin Davis.
Some will benefit more than others from higher interest rates, but for the most part, those future gains are already priced into their shares.
We think it will hold up well against the threats of challenger banks and digital banking.
Why we see it as today's most attractive trust bank.
These wide-moat firms offer above-average payouts and will likely see higher returns during the next several years as rates rise.
Regulators and investors continue to focus on regulatory capital ratios rather than unweighted leverage ratios.
We think the firm will continue to create significant value for shareholders.
Strong average loan/value ratios may not fully protect the country's banks.
For those who don't need exposure, it may be time to take profits.
Regulatory capital ratios are improving, but tangible common equity ratios are stagnant.
Although European banks are trying to build a large buffer against continental turmoil, the risks are still there, according to Morningstar's Erin Davis.
We explore which financial institutions are the most likely to dilute shareholders.
We think the acquisition of Merrill's international wealth management arm has created a buying opportunity.
Deep discounts are hard to ignore, but investors should steer clear.
The surprise announcement of 'flawed, complex, and poorly reviewed' bets that led to $2 billion in losses has caused shares to spiral downward.
Significant upside is evident as this truly global bank continues to implement its winning 'Five Filters' strategy.
Investment banking adds unwanted volatility to private banking results.
Despite recent price falls, most European banks are not bargains.
The most interesting part of the European Banking Authority's stress test lies not in the headlines.
Is the market mispricing quality in Europe?
The financial crisis revealed several winners and losers among foreign banks.
What lessons can investors glean from the U.K. financial crisis?
Loan losses are likely to increase as economic activity slows.