Jul
21

From Paschi to German Lenders, Investors Brace for Stress Tests

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  • Investor focus is on bad loans in Italy’s banking system
  • Lack of pass/fail mark could give deceptive sense of security

Italian banks, whose woes have prompted a debate over state aid, may not be the only ones in the spotlight next Friday when regulators publish their latest health check on Europe’s largest lenders.

Though Italy’s Banca Monte dei Paschi di Siena SpA will probably attract the most scrutiny with its mountains of soured debt, German, Austrian and Nordic banks also may be shown in an unpleasant light when the London-based European Banking Authority sets out its findings…

From Paschi to German Lenders, Investors Brace for Stress Tests

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