EU stress test results due today
The European Banking Authority (EBA) will reveal the results of stress tests of 90 banks across Europe later today.
The latest round of tests arose after last year’s failed to reveal the weakness among banks in Ireland and have been conducted to ensure banks have enough capital to cope with difficult economic situations, such as recession.
However, according to a recent report by Reuters, more than a dozen banks in Spain, Greece, Germany and Portugal are expected to fail.
The euro zone debt crisis has resulted in a surge in borrowing costs in countries such as Spain and Italy and this has raised concern that banks are not able to withstand potential losses if the crisis worsens.
The latest series of tests are regarded as the strictest since the global financial crisis, which commenced almost four years ago.