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Eu Will Announce On 23 July That All Banks Are Sound And Can Withstand Economic Shocks

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http://news.bbc.co.uk/1/hi/business/10501902.stm

The result of stress tests carried out to show if Europe's banks can cope with more economic shocks will be published later this month.

French Economy Minister Christine Lagarde said the results of tests, designed to boost confidence in the sector, will be known on 23 July.

And she predicted the tests will show European banks are "solid and healthy".

The tests on banks came after investor concerns about the health of the European banking sector.

Bond worries

The tests are designed to examine how certain banks would perform if there were a repeat of the financial crisis.

There are continued concerns that some European banks' balance sheets are burdened by bonds from Greece, Spain and Portugal.

These bonds have lost significant value over the course of the ongoing debt crisis.

Banks also face pressure from tighter capital requirements, extra taxes and additional regulation.

Last week the EU said it was to treble the number of banks that would be subject to public stress tests, as it tries to allay a growing global anxiety over Europe's finance sector.

'Exact criteria'

However, some analysts believe the exact criteria of the stress tests needs to be disclosed if the tests are to convince markets.

"You will soon be seeing the number of banks that will be submitted to the stress test, you will have better understanding of the exact criteria we apply and of how heavily we stress the system," said Mrs Lagarde.

"And then later on 23 July, the result of the stress test will be issued."

She added: "You will see that banks in Europe are solid and healthy."

The number of those forced to take part in the EU exercise will expand from the 22 big banks examined last year to include a further 60 to 120 banks, meaning that many not included in last year's stress-tests will now feature.

My bet is it will be like the US stress tests where all the banks pass and the testing criteria will be such they couldn't possible fail.

Plus of course with the locked in recovery there will be no problems for the EU banking system.

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http://news.bbc.co.u...ss/10501902.stm

My bet is it will be like the US stress tests where all the banks pass and the testing criteria will be such they couldn't possible fail.

Plus of course with the locked in recovery there will be no problems for the EU banking system.

Ah the US stress tests

I remember that thread...

http://www.housepricecrash.co.uk/forum/index.php?showtopic=113749

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My bet is it will be like the US stress tests where all the banks pass and the testing criteria will be such they couldn't possible fail.

a good half of the big US banks didn't pass, if memory serves correctly.

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a good half of the big US banks didn't pass, if memory serves correctly.

http://news.bbc.co.uk/1/hi/business/8039096.stm

Ten of America's largest 19 banks need a combined $74.6bn (£50bn) of extra funds to boost their cash reserves.

That is the main finding of the so-called "stress tests" to see if the banks have sufficient capital to cope should the recession worsen.

Bank of America is the most at risk, needing an additional $33.9bn.

"Our hope with today's actions is that banks are going to be able to get back to the business of banking," said US Treasury Secretary Timothy Geithner.

The results should go some way to lift the cloud of uncertainty that has engulfed the US banking sector by providing assurance that the sector would have the capital to handle further losses.

Should have checked, but still under 50% passed the test and that was based on some very favourable economic views.

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That gives the Bankers through August to mull it over, September to get frightened, October to decide they're screwed after all.

One crash coming right up.

Only question is which flavour of popcorn I'd like.

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What they are saying is that any future shocks will be 'unexpected', 'unforseen' and a 'surprise'.

Plus a good dash of 'it wasn't me guv, didn't see it coming'.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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