Mid-tier German banks likely to fail ECB assessment: RBS

By Graham Bippart
16 Oct 2014

Most European banks are likely to pass the European Central Bank’s Comprehensive Assessment, the results of which will be released on October 26, but mid-tier Portuguese, Italian, Cypriot and German banks are most at risk of falling short of a passing grade, according to analysts at Royal Bank of Scotland.

Analysts led by Alberto Gallo, head of European macro credit research at RBS, pointed to mid-tier German and Italian banks as the most at risk. Valuations of mid-tier German banks, they said, “do not fully compensate for structural risks”. And while mid-tier Italian banks have raised capital in ...

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