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Sunday, October 26, 2014

EBA publishes 2014 EU-wide stress test results - View press release - European Banking Authority

EBA publishes 2014 EU-wide stress test results - View press release - European Banking Authority



Bloomberg and Reuters
Waiting for Frances Coppola 's take on the subject, check again on her post Financial hurricanes

Here is Tyler Durden 's at ZeroHedge

Gavyn Davies at FT asks: "Two crucial questions remain. Has enough at last been done to fix the European banking system? And will this on its own be enough to ward off the threat of deflation that is hanging over the eurozone?"

While Dan McCrum at FT Alphaville "On the broader outlook, remember that at heart it is all about lending, and whether banks will now do more of it. Not likely, says Alberto (Gallo from RBS).
What does this mean for lending? 80% of banks may have passed the test, and two-thirds comfortably so, but even so they may still not be ready to expand lending. As we discussed in last week’s Revolver, banks remain reluctant to lend because of low leverage ratios, low quality of capital and weak demand for credit. 

Christian Schulz, Senior Economist of Berenberg 
"A period of stress and uncertainty ends for Eurozone banks with the end of the exercise. We expect banks to refocus their resources on running their business, which should gradually improve credit availability where it was impaired. The
growth impact on the Eurozone next year will be small (we estimate 0.1-0.2% of GDP), but in the periphery, where credit availability has been restricted, the impact could be larger. The ECB is providing generous funding if banks want to increase new lending."

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