Bloomberg Surveillance · Friday, October 2, 2026
European banks are reportedly in their strongest financial health in three decades, benefiting from a reasonable yield curve, benign credit conditions, and increased investment in technology. Despite energy shocks, the European economy has shown resilience, supporting the banking sector.
“And actually the line from them was that European banks are probably in their best health for 30 years. They've got a reasonable yield curve. The credit conditions are benign. There's been a pickup in loan growth. And actually, they're starting to get investing in technology.”
“And so, oddly enough, they were arguing this is actually a good environment in the last 30 years. And the benefit has been, despite all the shocks and the energy shock clearly today with diesel and gas, is that the economy has been pretty resilient.”
“So what we're seeing is an economy which is fraying. There's definitely some stress in the system coming from the energy prices, but actually the economy and the banks still continue to be in very resilient health.”