ECB/EBA delivers stress test in line with expectations - SocGen

FXStreet (Bali) - The ECB/EBA have delivered a stress test that is in line with expectations, notes Societe Generale.

Key Quotes

"We are left with very limited capital need beyond a handful of special cases. There will be some interesting bank specific work outs in store in
the coming weeks."

"However, overall the ECB are painting a reassuring picture of the banking system. There should be no burden on credit supply from the AQR/ stress test, and now credit demand needs to show up."

"Conclusion: Positive for equity, fundamentally disappointing on credit due to limited capital raising."