World Economy

Slump Fading in Europe Banks

Slump Fading in Europe BanksSlump Fading in Europe Banks

Since hitting a 3 1/2-year low just a month ago, European banks have rebounded 28%, with Greece’s Eurobank Ergasias SA, Italy’s UniCredit SpA and Deutsche Bank AG among the top performers, Bloomberg reported. The Euro Stoxx Banks Index closed at a two-month high on Friday, after the European Central Bank boosted stimulus measures and signaled an end to interest-rate cuts. The European Central Bank’s decision to offer eurozone financial institutions cheap four-year loans offers fresh hope to struggling banks in Southern Europe—and has drawn immediate ire from their Northern European rivals. The loans allow eurozone banks to borrow at no cost for up to four years.