ECB Member Says European Banks Better than Thought

Banks in Europe are not in as bad shape as markets commonly judge them to be, European Central Bank Vice-President Vitor Constancio was quoted as saying on Wednesday.

The ECB is scheduled to take over supervision of the region’s banks in about a year’s time, and a bank resolution mechanism should follow in 2015.

Before that, the central bank of the 17-member euro zone is due to conduct an asset-quality review, followed by stress tests, to ensure that banks enter common supervision in good health.

“The situation of the European banks is better than market perceptions,” Constancio told the Financial Times.

“If you take the largest European and American banks, you find that the median common equity tier one capital of European banks is slightly above the median of US banks.”

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza