Results of European bank stress tests to be unveiled today

| July 23, 2010 | 0 Comments
Results of European bank stress tests to be unveiled today

The results of the European banking stress tests are to be published today.

The stress tests were conducted to ease increasing anxiety over Europe’s finance sector.

A total of 91 banks from across Europe have been tested and regulators have assessed whether banks are strong enough to cope with any future economic crises, or to establish whether they require a cash injection to keep it afloat.

However, this morning, Spain’s El Pais newspaper has divulged that several of Spain’s savings banks, including those that have been involved in mergers recently, have failed the tests.

There has been concern for Spain’s largest regional lenders, since many of them have been heavily exposed to Spain’s property market crash.

However, Spanish banking giant, Santander, which has a substantial presence in the UK, is expected to “pass with flying colours,” according to Professor Pedro Swartz, professor of economics at Madrid’s San Pablo University.

The UK’s big four banks (Royal Bank of Scotland, Lloyds, HSBC and Barclays) have also been tested. However, these are also expected to pass the tests, according to the Financial Services Authority.

French banks are also expected to pass, according to Christian Noyer, the head of France’s central bank.

The results will be announced by the Committee of European Banking Supervisors.

Tags: , , , injection, , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 2026 times, 7 so far today