Bank tests ‘credible’ but questions around profitability linger

‘Credible’ is the word many are using to describe the European Central Bank’s Asset Quality Review and the European Banking Authority’s stress tests. But in the same breath that analysts are using to trumpet the regulators’ successes in holding Europe’s major banks to the flames and eliciting an immediate and broadly positive reaction from investors, some are also saying the system is still deeply flawed — and potentially unsustainable.