Are European banks still uninvestable?

Subject to strict EU regulation

European banks have returned to favour thanks to the prospect of higher rates. However, QE tapering in the eurozone will only happen after the European Central Bank (ECB) has delivered on its monetary policy and for this to happen, it needs to ease the regulatory pressure on banks.

Until recently, the European banking sector has been regarded as non-investable. Low rates, geopolitical changes, oil exposures, regulations, and non-performing loans (NPLs) have been the general pitfalls investors had to consider.  Warning German election could be 'inflection point' for Europe Nonetheless, any investment case must look towards the highly-charged relationship between the European banks and the ECB itself. Given the ECB was appointed Single Supervisor of the European banking sector in November 2014, it requires banks to be resilient to market shocks.  It needs th...