Turbulence feared as German lenders prepare for stress tests / Bank cash calls anticipated

Article reports that Germany's bankers and policymakers are braced July 2010 for possible emergency capital injections into some German banks after the eight members of the troubled Landesbank sector agreed to undergo stress tests alongside eight other banks.

This comes amid growing fears over the eurozone banking system's health. Europe's leaders hope the planned publication of stress tests will help restore confidence.

However, EurActiv reported on the 2 July 2010 that according to some policymakers and financial analysts, the stress tests that were due to be released later in the month were unlikely to reveal the true extent of possible insolvencies among European banks.

EurActiv, 2.7.10: EU to publish 'sugar-coated' stress tests for banks http://www.euractiv.com/euro-finance/eu-publish-sugar-coated-stress-t-news-495852

BBC News, 4.7.10: Lagarde eyes release of EU bank stress test results http://news.bbc.co.uk/1/hi/business/10501902.stm

ESO: Background information: More of Europe’s banks face stress testing http://www.europeansources.info/record/more-of-europes-banks-face-stress-testing/

Committee of European Banking Supervisors: Homepage http://www.c-ebs.org/

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