After the stress tests, EU banks are alive and kicking
MADRID | By Álex García.
credit in the eurozone
Do the ECB’s stress tests results change anything for EU banks?
MADRID | The Corner | The ECB’s comprehensive assessment showed positive results, yet not sufficiently positive for banks to increase risk and lending. So no, stress tests were not a clearing event and we are not entering a new era as some have said. Which makes it harder for policy makers to rely on bankers for economic growth. This scenario “will likely add to pressures for greater structural reform in Europe,” analysts at Barclays believe.
Do not expect credit to start flowing immediately in the eurozone
MADRID | By Luis Arroyo | As the ECB’s stress tests showed, Spanish banks have enough capital to face a serious economic crisis, with a GDP contraction of 5%. However, this does not mean that Spanish lenders are going to start lending credit right now. Up to present nobody has been preventing them from doing so, and yet credit is not flowing.