Bank Valuations at Stake as EU Splits With Wall Street Over ESG.

The European Banking Federation has warned that European banks will struggle to compete with their US counterparts if regulators continue to impose environmental, social, and governance (ESG) rules that Wall Street is not subject to. The European Central Bank (ECB) is pressuring banks to address ESG risks, including carbon emissions and resource consumption, while the US is rolling back planned ESG rules. The ECB's efforts are aimed at ensuring banks are prepared for new risks, but some in the industry believe the ECB is overstepping its mandate. European banks are already falling behind their US peers in terms of investor perception and valuations. [Extracted from the article]

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