As QE bites, bank stocks prove to be a not-so-safe haven

London

AFTER a disappointing third-quarter performance, European bank stocks are losing their shine for some investors despite hopes for a rebound in lending conditions and an end to years of post-crisis balance-sheet clean-ups.

Chief among investor concerns is the pressure on banks' lending margins from easy central bank cash, which has proven a double-edged sword as it aids lending but crimps the pricing of loans as well as returns from government bond holdings.