How Do Markets React To Banks' Share Buybacks?

By Pauline Avril, Maciej Grodzicki, Lukas Jürgensmeier and Alessandro Ricci

Banks have bought back over €60 billion of their own shares since 2020, which is a sign of the industry's confidence. However, share buybacks can also reduce the capital banks have available for potential crises. This blog post examines how euro area banks' share prices reacted to these buybacks.

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