Bar To Be Raised For EU Bank Stress Test |
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March 7, 2011
European banking regulators are preparing to introduce a “near fail” category into the new stress test process as part of a mechanism to force recapitalisations on weaker banks.
European banking regulators are preparing to introduce a "near fail" category into the new stress test process as part of a mechanism to force recapitalisations on weaker banks.
The European bank stress tests of a year ago saw all but seven of the 91 banks in the exercise pass a 6 per cent tier one capital threshold, a measure of financial strength.
But their credibility was called into question when two Irish banks that had passed the test had to be bailed out only four months later.
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