24 Oct 2013

ECB to stress test banks

12:46 pm on 24 October 2013

The European Central bank has announced it will carry out its most ambitious review yet of the region's banks.

About 130 banks will be scrutinised with new stress tests, which the ECB says are designed to assess risky behaviour, toxic assets and their ability to withstand financial shocks.

Banks with capital shortfalls may be required to bolster their balance sheets.

Previous stress tests have been criticised for not being tough enough, and the news of stricter tests caused bank shares to fall across Europe.