“The European banking system in unrecognisable since the financial crisis. Capital levels are broadly five times as much as they were before the financial crisis,” he says,
“The regulator is strong now and that has made for strong bank balance sheets. There are lower returns on equity because we have five times amount of equity in system.”
As a result, he says, there are for more opportunities credit investors than equity investors in banks.
Harris was speaking on the sidelines of Expert Investor’s Pan-European Congress in Barcelona last month.