ECB's Mersch out on Reuters

  • significantly more resilient than they were 5 years ago

Well, there's progress for you.

Amazing what a long period of cheap funding can do to bolster capital ratios and balance sheets.

  • competition in German banking sector is likely to intensify noticeably
  • pressure to adjust should also rise for German savings banks
  • weakened economic situation there will lead at most to limited losses for European banks
  • intensified competition within an environment of low interest rates over a longer period of time could markedly reduce earnings in the future.

NSS.

Meanwhile the euro continues to remain underpinned as equity markets fall further.

Oil though is finding a little support at the moment after the earlier drop.