EU plans stress tests for banks in Europe

Europe signalled today that it will to take new steps to try to bolster confidence in its badly tainted banks after the International Monetary Fund (IMF) urged it to take bolder steps to underpin the battered sector. Officials in Brussels and among European banking supervisors indicated that the EU is set to follow the lead set by Washington and carry out new “stress tests” to establish the resilience of its banks by September. The tests are expected to be carried out by individual country’s national regulators, according to common guidelines to be set by the EU’s Committee of European Banking Supervisors. “The decision was taken by EU finance ministers,” one government official in Brussels said… The Times