Caixa Geral de Depósitos (CGD) is Portugal’s largest bank by assets, deposits and lending. The bank was rapidly rising on Google Trends PT on July 22, 2023, due to the following reasons:
- Government bailout: The Portuguese government announced a €7.2 billion bailout for CGD, which has been struggling with bad loans and weak profitability. The bailout is expected to help the bank strengthen its financial position and avoid a collapse.
- Market uncertainty: The ongoing uncertainty surrounding the COVID-19 pandemic and the war in Ukraine has weighed on the Portuguese economy and the banking sector. Investors are seeking safe havens for their money, which has led to increased interest in CGD.
- Rising interest rates: The European Central Bank (ECB) recently raised interest rates for the first time in over a decade. This is expected to benefit banks like CGD, which will be able to earn more interest on their loans.
- Government support: The Portuguese government has been very supportive of CGD, which is seen as a key part of the country’s financial system. The government has provided the bank with financial assistance, and it has also guaranteed some of its liabilities.
The rising interest in CGD is a reflection of the bank’s importance to the Portuguese economy and the government’s commitment to supporting it. However, it is important to note that the bank still faces challenges, including a high level of non-performing loans and weak profitability. It remains to be seen whether the government bailout and the ECB’s interest rate hike will be enough to help CGD overcome these challenges and return to profitability.
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
Please search for “caixa geral de depositos” which is rapidly rising on Google Trends PT and explain in detail. Answers should be in English.
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