EU presses on bank liquidity ratios

Article reports that European Union officials want liquidity ratios to be considered in a new round of Europe-wide bank stress tests that may get under way as early as the first quarter of 2011.

The move follows criticism of the last stress test exercise, conducted by the Committee of European Banking Supervisors earlier in 2010, which focused on capital ratios: 84 of the 91 European banks scrutinised passed, including Allied Irish Banks and Bank of Ireland, Ireland’s two biggest banks, which have since faltered.

ESO: Background information: EU plans regular bank stress-tests http://www.europeansources.info/record/eu-plans-regular-bank-stress-tests/

CEBS: 2010 EU Wide stress testing http://www.c-ebs.org/EuWideStressTesting.aspx

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