** Banking stocks dominate trading activity across Europewith Eurozone banks up 1.5 pct.
** The regional banking index has now retraced more than2/3rds of the losses incurred in the Sept-Oct sell-off.
** Banking index rises for a fifth day following results ofa region-wide banking health check.
** Erste Group, up 7.6 pct is Europe's topperforming stock & region's most active with almost 3/4th of afull day's volume traded in the first 30 minutes of trading.
** Commerzbank up 6.2 pct is second-best performeracross Europe with a half a day's average volume changing hands.
** Italy's Monte dei Paschi di Siena worst of thelot, down 15.2 pct. CEO tells paper will not ask for additionalstate aid..
** Lloyd's Banking Group off 2.1, third worstperforming stock on the STOXX 600 after narrowlypassing test. Jefferies cuts to "underperform." (RM: vikram.subhedar.thomsonreuters.com@reuters.net)