Now Reading:

Markets await EU banking "stress tests"

world news

Markets await EU banking "stress tests"


Europe’s banks will be under the spotlight in London tonight with the publication of the Committee of European Banking Supervisors’ “stress tests”.

91 banks in all have been studied to see how they could cope if the economic situation declines further, in a bid to reassure markets that Europe is out of the doldrums and there is no risk of systemic failure in the money markets.

“Certainly we would expect banks, certain smaller banks or the savings banks in Slovenia, in Spain, in Portugal and some other countries to actually fail, so we’ll be looking at these results very, very carefully and very precisely. We don’t expect, having said that, the larger banks in major EU countries to have failed,” says financial analyst Howard Wheeldon.

The report is coming out after markets close in Europe and ahead of the weekend, giving the moneymen 48 hours to mull over the figures.
Several Spanish savings banks, including some that have recently merged, may have failed the tests according to press reports.

The IMF has expressed its doubts as to the rigour of the tests, and Euronews will be live in London tonight to fully develop this story.

Every story can be told in many ways: see the perspectives from Euronews journalists in our other language teams.

Next Article