Bankers concerned over stress test results / IMF calls for more ‘stress-test’ openness

Senior bankers and regulators from across Europe have expressed deepening concerns that the stress test exercise of 91 banks expected to be announced on the 23 July 2010 will produce a skewed league table of institutions based on misinformed comparisons of financial strength.

Separately, in the IMF's annual health check on the eurozone economy issued on the 21 July 2010, IMF staff said that while the markets seemed to have taken a positive view of the stress test process so far, 'some uncertainty regarding the stringency of the tests is likely to remain'.

See separate report for information on the results of the stress tests, and market reaction, on the 23 July 2010.

ESO: Background information: EU regulators name 91 ‘stress test’ banks http://www.europeansources.info/record/eu-regulators-name-91-stress-test-banks/

EurActiv, 19.7.10: EU agrees key criteria for testing health of banks http://www.euractiv.com/en/financial-services/eu-agrees-key-criteria-for-testing-health-of-banks-news-496445

IMF Survey, 21.7.10: Euro Area: Restoring Confidence Key to growth http://www.imf.org/external/pubs/ft/survey/so/2010/CAR072110A.htm

EurActiv, 23.7.10: Governments play cat and mouse over stress test results http://www.euractiv.com/financial-services/stress-test-talks-under-shroud-secrecy-news-496584

Website: Committee of European Banking Supervisors (CEBS) http://www.c-ebs.org/Home.aspx

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