Carmignac's Medecin: Why we still hold EU banks

Portugal's €5bn bail-out of Banco Espirito Santo is an idiosyncratic event and Europe is still home to some quality banks, explains Carmignac Gestion's Jean Medecin.

Bank solidity ‘Super Mario’ Draghi has not only preserved the integrity of the eurozone monetary union, he has also given time for political and economic leaders to strengthen the governance of the area. The forthcoming Asset Quality Review assessing banks’ solidity should be a key milestone in the multi-year trend of deleveraging, de-risking and re-regulating the financial sector. The success of eurozone leaders in reducing the systemic risk around financial institutions is shown in the recent Banco Espirito Santo event. The Portuguese government has had to bail out the country'...