DAVOS, Switzerland, Jan 26 (Reuters) – Bankers expect a
thorough European Central Bank (ECB) health check of the euro
zone’s largest banks to reignite domestic and cross-border
merger activity by rebuilding confidence among lenders.
The sovereign debt crises that nearly caused a break-up of
the single currency in 2011/12 has generated mistrust among
banks and caused an effective breakdown of cross-border bank
investment flows as they hoarded capital at home.