A European Union-wide banking stress test has been conducted by the
Committee of European Banking Supervisors every year since 2009. The second instance (
2010 European Union banking stress test exercise
A European Union-wide banking stress test exercise has been conducted by the Committee of European Banking Supervisors every year since 2009. The second instance was performed in July 2010. The Council of the European Union (in its economic and ...
) was performed in July 2010. This third round was carried out with results published in July 2011. The
Council of the European Union
The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and informally known as the Council of Ministers, is the third of the seven Institutions of the European Union (EU) as ...
(in its
economic and financial – ECOFIN – configuration) mandated that Committee so to do, in the aftermath of the
global financial crisis which started in 2007.
2011 stress test results
The results for the 2011 exercises were published on 15 July. Eight out of 90 banks failed the test—five in Spain, two in Greece and one in Austria. Spain also is one of the leading countries in the list of approved banks (20), because it put up almost all of its financial sector (95 per cent, against an average of about 60 per cent).
The test is controversial, because Spain and Germany have complained the stress tests excluded dynamic provisions recognised by local regulators.
Stress Tests Pressure 24 Banks to Raise Capital
Bloomberg In fact, a German bank didn't pass the test but they refused to publish its data and therefore it is not included in the official list
See also
* List of bank stress tests
* European System of Financial Supervisors
*Supervisory Capital Assessment Program The Supervisory Capital Assessment Program, publicly described as the bank stress tests (even though a number of the companies that were subject to them were not banks), was an assessment of capital conducted by the Federal Reserve System and thrif ...
, a similar exercise in the United States of America
References
Further reading
OECD: The EU Stress Test and Sovereign Debt Exposures
External links
Official webpage
{{2008_economic crisis
Economy of the European Union
Stress tests (financial)