No clean bill of health for EU banks in stress test
Source: Reuters
Banks from Italy, Ireland, Spain and Austria fared worst in the latest European Union stress test, which the region's banking watchdog said on Friday showed there was still work to do in order to boost credit to the bloc's economy.
Eight years since the collapse of Lehman Brothers sparked a global banking meltdown, many of Europe's banks are still saddled with billions of euros in poorly performing loans, crimping their ability to lend and putting off investors.
"While a number of individual banks have clearly fared badly, the overall finding of the European Banking Authority - that Europe's banks are resilient to another crisis - is heartening," Anthony Kruizinga at PwC said.
Italy's Monte dei Paschi (BMPS.MI), Austria's Raiffeisen (RBIV.VI), Spain's Banco Popular (POP.MC) and two of Ireland's main banks came out with the worst results in the EBA's test of 51 European Union (EU) lenders.
"Whilst we recognize the extensive capital raising done so far, this is not a clean bill of health," EBA Chairman Andrea Enria said in a statement. "There remains work to do."
Read more: http://www.reuters.com/article/us-eu-banks-tests-idUSKCN1092EA
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