- the ECB’s Comprehensive Assessment (CA) shows broad resilience of EU area banks
Part of the conclusions from a report out today from the ratings agency.
Overall, Moody’s views the results of the CA as credit positive for euro area bank creditors, with the most notable outcomes of the exercise being the progress toward balance-sheet repair and the improved transparency of bank accounts.
But they also add a note of understandable caution
At the same time, Moody’s believes that the ECB’s declared aim of restoring confidence in Europe’s banking systems will take time and could be challenged by the still difficult character of the operating environment which faces the region’s banks
Furthermore, many banks have only passed the stress test by very thin margins and/or could be challenged in meeting requirements based on fully-phased-in capital ratios. Accordingly, many banks will be expected to do more.
Full report here courtesy of Livesquawk
