European Banks Minimum Reserve Ratio; Italian Politics: Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Research evidence excerpt

European Banks Minimum Reserve Ratio; Italian Politics: Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Gigi Sparling - Specialist Sales - European Financials AC (44-20) 7134-0355 Europe Specialist Sales J P M O R G A Nghislaine.sparling@jpmorgan.com

J.P. Morgan Securities plc 01 July 2026

European Banks Minimum Reserve Ratio; Italian Politics

Gigi Sparling

+44 207 134 0355

ghislaine.sparling@jpmorgan.com

Today: Eurozone manufacturing PMIs (9am); UK Manufacturing PMIs (9.30am); Eurozone CPI (10am); MBA mortgage

applications (midday); ADP employment (1.15pm); US ISM (3pm)

3 Key Highlights Today:

1. European Banks: Minimum Reserve Ratio discussion back again - Small Negative

2. Italy: Politcs and Budget thoughts from our European economist

3. Upcoming J.P. Morgan Events: Feedback calls with Sheel on UK domestic and Irish banks - please let me know if

you’d like a call; French Financials Tour July 6th, Greek Banks tour also July 6th. Do let me know if you’d like further

details on any of these.

Use the links below to jump straight to each section:

The Detailed Highlights

Post results, Newswires & Away from Us

Global Financials wrap, Trading Recap and Colour

Global Financials Research Links

Global Macro Research Links

Save the Date: J.P. Morgan Events

J.P. Morgan Financials Contacts

EUROPEAN BANKS: Small negative. A story on Reuters last night that the ECB is considering raising the banks minimum

reserve ratio from 1% to 2%. This seems to come up for the ECB during rate hike cycles and was a big discussion point for the

sector in 2023 before they decided to keep them unchanged. The sensitivities are here - but note this exercise is historic and would

have been done with interest rates closer to 4% (i.e.