13 May 2009

Bank stress tests now intended in Europe

12:29 pm on 13 May 2009

The European Union plans to subject major banks in Europe to stress tests similar to those conducted in the United States to determine if they are adequately capitalised.

The tests will be carried out by national supervisors according to common guidelines by September, but the results won't be made public.

Last week the results of tests in the United States revealed 10 banks require around $US75 billion in capital to withstand further deterioration in the economy.