EU stress test pass rate under fire

Nine Europeane banks failed the second set of stress tests carried out on 91 European banks, in a result announced on the 15 July 2011 that some analyists claimed undermined claims the exercise was tough enough to restore investors' faith in the eurozone financial system. Sixteen further banks barely passed the tests.

The International Monetary Fund (IMF) called on Europe to strengthen banks that failed or nearly failed the tests. Nevertheless, it also said 'The Fund welcomes the EU-wide stress test exercise carried out under the auspices of the European Bank Authority (EBA) and the strengthened methodology and assumptions that have been applied across the banks in the exercise'.

ESO: Background information: Debt deals set to follow stress tests / Stress tests fail to rescue Europe’s banks http://www.europeansources.info/record/debt-deals-set-to-follow-stress-tests-stress-tests-fail-to-rescue-europes-banks/

EBA: EU-wide stress testing http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing

BBC News, 15.7.11: Eight banks fail EU stress test with 16 in danger zone http://www.bbc.co.uk/news/business-14169940

Deutsche Welle, 16.7.11: IMF calls for strengthening of European banks following stress tests http://www.dw-world.de/dw/article/0,,15238948,00.html

EurActiv, 18.7.11: European bank stress test results raise doubts, hopes http://www.euractiv.com/euro-finance/european-bank-stress-test-result-news-506610

ECB: Press Release, 15.7.11: ECB welcomes the publication of the EU-wide stress test http://www.ecb.int/press/pr/date/2011/html/pr110715.en.html

European Commission: RAPID: MEMO/11/513: Statement by Commissioners Barnier and Rehn following the publication by the European Banking Authority of the 2011 stress test results http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/513&format=PDF&aged=0&language=EN&guiLanguage=en

IMF: Press Release, No.282, 2011: Statement by the IMF on the European Banks Stress Test http://www.imf.org/external/np/sec/pr/2011/pr11282.htm

El País, 15.7.11: Five Spanish lenders fail stress tests but no more capital needed http://www.elpais.com/articulo/english/Five/Spanish/lenders/fail/stress/tests/but/more/capital/needed/elpepueng/20110715elpeng_9/Ten

France24, 15.7.11: Eight banks fail European stress tests http://www.france24.com/en/20110715-eight-top-european-banks-fail-stress-tests-ecb-survive-recession

EBA: 2011 EU-wide stress test aggregate report http://stress-test.eba.europa.eu/pdf/EBA_ST_2011_Summary_Report_v6.pdf

Mediapart, 18.7.11: Stress tests fine, now move along (via PressEurop) http://www.presseurop.eu/en/content/article/781861-stress-tests-fine-now-move-along

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