Markit: Europe's banks under scrutiny
The fate of the eurozone’s ailing economy, and the policies undertaken to tackle the malaise, should have the biggest influence on spread direction in the coming months. But in the near term, Europe’s banking sector will be under scrutiny with the announcement of the ECB’s Asset Quality Review and the EBA’s stress test results on October 26.
Several banks are rumoured to have failed the tests, though it should be remembered that some of the tests were taken as a snapshot at the end of 2013. Many banks have raised capital in the meantime, and the headlines engendered by the so-called failed