Bank Stress Test Results To Be Published Today


The European Banking Authority (EBA) will release the results of the stress tests they have been performing on 90 European banks. The EBA have tailored the tests to discern which banks have enough capital to take any more knocks from difficult economic situations. The same tests from last year have been criticised for not being harsh enough, with only 7 banks failing out of 91. The test failed to spot weaknesses in Irish banks Bank of Ireland and Allied Irish Bank (AIB), both of which passed the EBA test. AIB was in need of a bail-out by the government only months after passing.


The EBA have said that the latest tests have been made stricter, but hints from the ratings agency Standard & Poor’s suggest that they are still not harsh enough. During this round of stress tests, 15 banks are expected to fail. This level of failures is hoped to ease the distrust of investors as the European Union exposes the truth about the extent of the banks’ problems. It is hoped that the tests will show investors which banks can be trusted and which ones cannot. It is feared that without such an exposure, all the banks will be lumped into the same category and will simply be avoided altogether. This way, those that credit the banks will know exactly the risks they are taking and the European market will not be completely abandoned, boosting the euro.


The test results are going to be published at 5pm today. Let us know about what you think of the revised tests!


Explore posts in the same categories: Uncategorized

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: