Tests/Banks

26^th July 2010

According to results published on 23rd July by the Committee of European Banking Supervisors (CEBS) only 7 of the 91 European banks subject to stress tests, that are designed to check their financial resilience were rejected. These are the German bank Hypo Real Estate, the Spanish savings banks Diada, Cajasur, Espiga, Unnim and Banca Civica as well as the Greek Bank ATE (Agricultural Bank of Greece). These establishments will have to raise funds to enhance their financial resilience that is at present less than that of their competitors. As part of the stress tests two scenarios were set out by the European Central Bank (ECB). The first, the so-called base or central macroeconomic scenario includes growth forecasts that are moderately lower than those put forward by the European Commission. The second, the so-called negative macroeconomic adopts hypotheses that are supported by a serious worsening in the economic environment.

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