The banks are getting better. After nine consecutive months of increased profits, the sector had its best quarter in five years. The data show that something is changing and that perhaps we are entering a recovery that, let's not forget, started to have an effect within the banking sector as early as two years ago. Does this mean that the banks are finally healed?
The answer is no. The data look good because expectations were so low and banks have been selling off assets and public treasuries. Still, the numbers invite some optimism even though there is a lot of work left to do. The banks are still not doing their core business as much as they were before the crisis -- loaning money -- and they have not passed the latest round of European stress tests. Indicators suggest that they will, and hopefully that happens.
