Deutsche Bank AG (USA) (DB), Banco Santander, S.A. (ADR) (SAN): This Continent’s Banking Marketplace May Surprise You

If there is a country to watch this year in Europe, it’s probably Spain, which has been looking a lot like how Greece looked in 2011. Banco Santander, S.A. (ADR) (NYSE:SAN)’s fate will be tied, at least in part, to what Madrid does in terms of austerity measures or securing cheaper ECB loans. Thanks to its size, only 25% of Santander’s 2013 profits came from continental Europe, while over half were in Latin America, owing to the global nature of the bank, though investors may be hesitant to get involved in anything Spanish if its unemployment and economic woes continue. Under the new leadership of chief executive Javier Marin, the bank appears to have taken considerable steps to avoid ECB loans however possible, especially as it will be under closer watch by the ECB, like Deutsche Bank AG (USA) (NYSE:DB).

The ECB admitted that the economy is still sluggish, and banks are now coming to grips with the potential of a more powerful central bank on the continent as it makes moves to re-capitalize and hold strong through the storm. The crisis though is far from over, and given the emergency plans already in the offering should things get ugly, more intervention may happen, and the “national champion” banks of Germany and Spain may have another battle ahead. Or see their crowns taken from them.

The article A New Look at Europe’s Banking Landscape originally appeared on Fool.com and is written by John McKenna.

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