(HSBC) European Banks : Stress Test

* The EBA has published its biennial stress test; the outcome is benign with average CET1 at 9.2% in the adverse scenario
* The results strengthen the regulator’s hand in pushing back on Basel IV. We might also see lower CET1 targets in 2016 SREP
* Banks that looked weakest have already taken, or are in the process of taking, action. Some welcome relief for the sector