His response was cautious but positive. ''I don't want to underplay the situation, to say it's not a solvency problem, it's a profitability problem doesn't mean that one underplays but figure wise, we see from a solvency viewpoint, our banks are better off than years ago but our banks do have profitability issues, especially those with a high share of NPLs (non-performing loans), but not only those with high share of NPLs, some of it has to do with weak growth performance of the past few years.
Draghi added that he was pretty confident that "strong supervision, robust regulation and better communication by supervisory authorities will still improve the situation and the perception in the rest of the world's eyes."
Call me cynical but I'm not sure the EBA's "steady state" monitoring communication is quite what investors are looking for. Especially when you have a panel of respected academics including ZEW's Sascha Steffen suggesting this month that European banks need 900 billion euros ($1 trillion) of fresh capital to convince investors they are robust. Who knows? But just compare that to the 280 billion euros the EBA says has been pumped in since 2011.
Plus the report's authors also point out that the 34 listed banks in the latest stress tests results have lost on average 33 per cent of their book value since the last stress tests were done less than two years ago. A clear sign in my mind that the market still had significant concerns about the health of bank balance sheets and their ability to make profits.
That's not to say plenty of progress has been made on capital levels and liquidity. Yet as Barclays Chief Executive Jes Staley told CNBC Friday that, for all that progress, the European banks are weighing on the region's growth. "If you look at the top 12 banks across Europe, on average they're trading at about a 50 percent discount to book value. That's not healthy for the financial system, that's not healthy for the European economy."
Mario Draghi has alluded that there are a few different issues here. Fears about a lack of capital and then the ability of banks to make profits particularly in a zero or negative interest rate environment (the latter wasn't even accounted for in the current stress tests but that's another issue).
Banks are adapting to meet the challenges although Staley argues for more work on that front, telling CNBC "the banks need to get into a better position of profitability."