EU-BANKS/FRANCE REACTIONS Stress test results reassure international investors, French analyst says

Record ID: 565628

  • Title: EU-BANKS/FRANCE REACTIONS Stress test results reassure international investors, French analyst says
  • Date: 27th October 2014
  • Summary: PARIS, FRANCE (OCTOBER 27, 2014) (REUTERS) INTERIOR OF MONTSEGUR FINANCE ASSET MANAGEMENT SCREEN WITH GRAPH SHOWING SHARES IN FRENCH BANK SOCIETE GENERALE UP SLIGHTLY SINCE CLOSE ON FRIDAY FINGER SHOWING SHARES IN SOCIETE GENERALE UP 1.58 PERCENT (SOUNDBITE) (French) MONTSEGUR FINANCE ASSET MANAGER FRANCOIS CHAULET SAYING: "The opening of the markets this morning was pretty positive, the results of the stress tests can be seen with a bounce in the banking sector at the opening of between two and three percent for the major French banks. That's really about reassurance and is part of a pattern of confidence with the support of the European Central Bank which shows investors that the sector is truly under control and under permanent review." SCREEN WITH GRAPH SHOWING SHARES IN FRENCH BANK SOCIETE GENERALE UP SLIGHTLY SINCE CLOSE ON FRIDAY SCREEN SHOWING STATE OF CAC40 (SOUNDBITE) (French) MONTSEGUR FINANCE ASSET MANAGER FRANCOIS CHAULET SAYING: "Today we can say that after these stress tests there are no more phantom banks in Europe, the whole of the banking sector is under control, surveyed by a supranational body, which can't be accused of favouritism in promoting one sector or another, particularly the banking sector which is very important as far as economic policy is concerned, and based on that I think an international investor looking at the European banking sector will be reassured." ANALYSTS WORKING
  • Embargoed: 11th November 2014 12:00
  • Keywords:
  • Location: France
  • Country: France
  • Topics: General
  • Reuters ID: LVA3NDIBYGYB0IZWWF79QZ9IIJ2D
  • Story Text: Shares in major French banks were up slightly on Monday (October 27), reflecting a boost in investor confidence at the results of an industry health check carried out on the European banking sector, an analyst said.
    Only one smaller French lender failed, though since the 2013 cut-off date it has raised sufficient capital, and asset manager Francois Chaulet of Montsegur Finance said that the clean bill of health would help boost investor confidence.
    Shares in French banks were up between two and three percent when markets opened, indicating that investors were reassured that banks were now under international supervision.
    "Today we can say that after these stress tests there are no more phantom banks in Europe, the whole of the banking sector is under control, surveyed by a supranational body, which can't be accused of favouritism in promoting one sector or another, particularly the banking sector which is very important as far as economic policy is concerned, and based on that I think an international investor looking at the European banking sector will be reassured," Chaulet told Reuters TV.
    Elsewhere in Europe, there were mixed responses to Sunday's results which saw 25 banks fail the landmark health checks, with 14 still having a capital shortfall at the end of September.
    Shares in Italy's Monte dei Paschi slumped 17 percent on Monday after it was found it had the biggest capital hole to fill among European banks.
    But more widely, analysts agreed the results were generally better than expected.
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