NEW YORK (TheStreet) --It's hard to blame investors for feeling a bit shaky about the global financial system, given the recent struggles of Deutsche Bank, (DB) - Get Report but Cantor Fitzgerald CEO Shawn Matthews thinks banks in the U.S. are doing just fine.
"I think U.S. banks are actually in very good shape," Matthews said Friday afternoon on BloombergTV's "Bloomberg Markets." "I don't see any issues when you look at them. Again, it's just about leverage characteristics in the institutions and right now the banks are in good shape. It's a question of earnings power at zero interest rates, but that's much different than talking about solvency issues."
A prevailing culture of low interest rates around the globe has stymied banks in recent years and may even be the driving factor behind some banks' staff cutbacks.
The pressures of the low interest rate environment aren't going away anytime soon, Matthews opined.
"Banks right now are trying to become much more efficient institutions and they have to use their capital more logically," he said. "They are in a long-term contraction phase of the market. The next five or ten years, I think banks are not going to get bigger, they'll inevitably get smaller as regulatory capital and pressures continue."