Have euro-zone banks not been overly weakened?

Euro-zone banks have been weakened by: The obligation to hold reserves of very-low-yielding liquid assets and risk-free bonds; The persistent flattening of the yield curve; The sharp increase in regulatory capital. This has resulted in: A low RoE (return on equity), which makes it difficult for banks to attract capital; Low profitability, which makes risk-taking difficult for banks. The weakening of banks in the euro zone is cause for concern.