Will Europe’s Bank Stress Tests Lead To Fireworks?

This year’s European Banking Authority (EBA) stress test results are set to be released on July 29, which should be an important date in the calendar for financial analysts across Europe and the US.

However, as Bank of America writes in a research report issued to clients at the end of last week, this year’s stress test from the EBA was never designed to be challenging and could be somewhat of a non-event.

Macquarie Calls On Central Banks For Help; Stifel Says No Hike Until 2017

Indeed, the 2016 EBA stress test does not include the “pass/fail” conclusion of prior tests. Nor is it widely assumed that banks will have to raise equity as a result of a poor grade. According...