A test of strength for Europe's banks

A test of strength for Europe’s banks

European bank's have been beset by significant uncertainty and volatility in 2014. However, for some managers, banks have been the best source of return. Jenne Mannion reports.

The conclusions of the Asset Quality Review (AQR) and stress test, announced last month, have seen European banks experience a turbulent year in 2014. As well as facing a capital crunch through the combined impact of Basel III capital ratio requirements and leverage ratio requirements, the European Central Bank's (ECB) comprehensive assessment, and possible further national regulatory developments, saw PricewaterhouseCoopers estimating total capital shortfalls in Europe would be in the vicinity of €280bn. However, in the face of these issues and the AQR, some managers have held their ...