The stock market is flashing ever-stronger orange about the health of Europe’s banks. Yet the regulatory community tells us good news about its capital strength – despite unsustainably low profitability. Fingers crossed for a muddle through!
Europe will “faithfully” implement new international standards that will force its banks, struggling to regain investor trust, to raise around €135 billion in additional capital to face future crises, the European Commission said on Tuesday (12 November).
EU and industry officials say it is “unlikely” that Europe and the US will agree on new rules to strengthen the banking sector by the time of the G20 meeting in Hamburg on 7-8 July.