Moody's Ratings said in a recent report that the outlook for the banking sector in France, Germany, Sweden, Belgium and the Netherlands has changed from negative to stable. The rating agency also maintains a stable outlook for the banking sector in Italy, Spain, Denmark, Switzerland, and the UK over the next 12 to 18 months. Moody's analyst Effie Tsotsani said the view was based on a “sluggish but continuing cyclical recovery,” with lower interest rates and stable unemployment in many countries maintaining economic activity. The impact of geopolitical tensions and potential trade tariffs on the European continent remains a risk to the industry's outlook, she said.

Moody's Ratings said in a recent report that the outlook for the banking sector in France, Germany, Sweden, Belgium and the Netherlands has changed from negative to stable. The rating agency also maintains a stable outlook for the banking sector in Italy, Spain, Denmark, Switzerland, and the UK over the next 12 to 18 months. Moody's analyst Effie Tsotsani said the view was based on a “sluggish but continuing cyclical recovery,” with lower interest rates and stable unemployment in many countries maintaining economic activity. The impact of geopolitical tensions and potential trade tariffs on the European continent remains a risk to the industry's outlook, she said.