Bank stress test results due today
The results of the European Banking Authority Stress Tests are due out today, but between 10 and 15 are believed to have failed.
The Telegraph reports that all of the UK banks are believed to have passed.
The test will measure the strength of each institution by asking them to publicise details of their sovereign exposure. However, it is believed that while these tests could produce reassuring results short term, they might not answer longer term worries.
A spokesperson from Societe Generale Bank said: “the stress test is unlikely to assuage broader market concerns with respect to eurozone banks. Indeed the market has moved in to mode deep seated structural eurozone concerns.”
The test will expose banks that failed or scraped a pass, and it is hoped that these institutions will follow the lead of those who failed last year who subsequently planned to prove their financial strength.