Bank stress test scheduled for 2010

European banks are to be subjected to another stress test this year to ascertain the industry’s ability to absorb shocks.

Speaking at the European Parliament, chairman for the Committee of European Banking Supervisors (Cebs) Giovanni Carosio stated: ’For 2010 another exercise is scheduled, with involvement of the EU major banking groups.’

According to Reuters, a similar move carried out in 2009 found that financial institutions would be able to cope should economic conditions decline again.

Were the results of the forthcoming test to be the same, it may help attract more private wealth investors to look at opportunities in the financial sector.

Mr Carosio explained that the sample group of banking included in the test would be extended to include ’small and domestic institutions and institutions not represented on the Basel Committee’.

This was established in 1974 and has grown to include 27 counties. It aims to operate a forum to promote cooperation regarding banking supervision.ADNFCR-2318-ID-19583718-ADNFCR