EU banks hit with harsher stress tests

clock

Europe's biggest banks must fully disclose their exposure to sovereign debts, as part of a new round of stricter stress tests.

However, banks will not have to consider the impact of a formal default by a European government, the BBC reports, despite this being a key criticism of previous tests that failed to anticipate the collapse of Irish banks last year. In other respects, the latest tests will be much stricter, according to the European Banking Authority (EBA). They will run for the next three months, with the results published in June this year. Banks will be "expected to disclose their exposures to sovereigns broken down by accounting portfolios, maturities and countries," said the EBA. The disclosur...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read