July 23, 2010
European banks largely passed a round of government stress tests, with just a few institutions found to need modest amounts of new capital.
But the overall strong grades, awarded to a banking system that for the last several months has lurched from crisis to crisis, raised questions over whether the monthlong tests were tough enough to be judged credible.
The stress test results, intended to restore trust in the European banking system, showed that the 91 banks scrutinized could face €566 billion ($729.35 billion) in total potential losses in a deteriorating economic and financial environment.
The tests found that seven banks would need to raise new capital to fortify their finances and weather a potential economic downturn or government bond crisis.
Five Spanish banks, one German bank and one Greek bank were the only institutions to fail the tests. Their combined shortfall would be about €3.5 billion, according to the Committee of European Banking Supervisors, which coordinated the tests.
More
No comments:
Post a Comment