How right I was looking forward to her take
European Stress Tests: not stressful enough
"In my view the ECB has done a good job with the AQR. It has standardised methodologies across the European banking system: it has forced banks to end systematic over-valuation of certain types of asset, notably commercial loans and property: and it has exposed serious weaknesses in risk pricing and management, notably in counterparty credit risk where 50% of banks need to improve their methodologies."
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"But I am much less impressed with the stress tests. The EBA has madeexactly the same mistake that it made in previous tests: it has ignored the real risks facing the EU."
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"The European banking system is still infested with zombies, which can pass stress tests but can't lend. Until these are killed off or significantly restructured, there can be no great improvement in lending."
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