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Image header Agence Europe
Europe Daily Bulletin No. 10330
GENERAL NEWS / (eu) eu/banking

Increased supervision for undertakings that only just pass “stress tests”

Brussels, 07/03/2011 (Agence Europe) - Banks that only just pass the European stress tests may be subject to increased supervision. In an interview to the Financial Times on Monday 7 March, Andrea Enria, the president of the European Banking Authority (EBA), stated: “What I would very much like to see is not a simple pass-fail outcome to these tests - if you pass, nothing to be done, if you fail, you have to raise capital by that amount. It would be nice to have supervisory actions also for banks that have maybe passed the test but are very close or have other areas of concern”. The 2011 banking stress test methodology is currently being finalised in collaboration with the European Systemic Risk Board and the national supervisors. The EBA will publish the macro-economic scenarios on Friday 18 March, which will be subject to examination, as well as the list of banks due to undergo stress tests. The complete stress test methodology, which at the same time includes an analysis of banks' liquidity, will be published in April. At the same time, the EBA and the national supervisors will look at what possible measures can be taken when failing banks are identified. The final test results will be published in June. (M.B./transl.fl)

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