Europe’s banking stress tests failed a test of their own on Monday. The cost of euro-denominated interbank borrowing continued to rise, approaching a one-year high

The Euro Interbank Offered Rate, or Euribor, has risen every day since May 31st, even after the supposedly soothing news on Friday that only seven out of 91 banks failed stress tests conducted by the region’s banking authorities. When it comes to lending to each other, lenders remain wary.