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The
next annual review by index provider STOXX is scheduled for
September 2016 and any changes will take into account prices at
the end of August.
STOXX could initiate a "fast exit" for Credit Suisse and
Deutsche Bank shares from the STOXX 50 if they rank below 74 at
the end of next month in a selection list that rates European
stocks on the basis on market cap and daily turnover.
Infrastructure firms Vinci <SGEF.PA> and Spain's Iberdrola <IBE.MC>
could potentially replace them, SocGen adds.
Credit Suisse and Deutsche Bank have lost 55 percent and 49.3
percent respectively this year as Britain's decision to leave
the European Union worsened an already grim outlook for the
banks hamstrung by sluggish markets, high regulatory costs and
fines.
Last week, the International Monetary Fund said Deutsche Bank's
links to the world's largest lenders make it a bigger potential
risk to the wider financial system than any other global bank.
(Reporting by Vikram Subhedar; Editing by Nigel Stephenson)
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