JP Morgan's lead banks analyst has told the group's fund management clients that Europe's authorities should take stakes in the region's banks via the European Financial Stability Facility, in a scheme akin to the $700bn Troubled Asset Relief Programme implemented during the crisis by the US.

Kian Abouhossein, who was last year ranked as the second-best individual banks analyst Europe in the Thomson Reuters Extel rankings, yesterday hosted a conference call to discuss a 120-page report on the liquidity coverage ratio, and its impact on bank earnings.