The euro zone’s financial sector is in better health now than at any time in the last two years, the European Central Bank said Wednesday in its half-yearly Financial Stability Review.
The ECB took much of the credit for this improvement itself.
And exactly what are they taking credit for?
In a sober assessment of the state of the zone’s financial system, the E.C.B. said that a prolonged recession had made it harder for many borrowers to repay their loans, burdening banks that had still not finished repairing the damage caused by the 2008 financial crisis.
Last year ‘'was not a good year for banks at all,'’ Vítor Constâncio, the vice president of the E.C.B., said Wednesday.
ECB: Financial Sector In Best Condition Since 2011 [WSJ Real Time Economics blog]
Risk of Bank Failures Is Rising in Europe, E.C.B. Warns [NYT]