ECB stress test – 25 Banks fail health check

The European Central bank stated yesterday that 25 of the Eurozone’s banks came out unsuccessful of the health check but due work has been accomplished.   The banks at risk were mainly found in Italy, Cyprus and Greece but the ECB said that by now, only a meek sum of 10 billion euros has to be amassed.   Italy on its part is already struggling with recession and nine of its bank is striving to catch up with funds.   This financial health check has been attempt by the ECB to gauge the state of its 130 banks across the Eurozone as a preventive measure to avert any crisis.   Many are expecting this test to give a boost to large banks in order for them to stimulate economic growth as the Eurozone is slowly slumping.   The ECB stress test in itself spurred critiques with some claiming that the test should have been more rigid while some claim that this a good benchmark to instill confidence.   The test likewise brought out the missing components of banks and unsurprisingly, it was found that many banks overvalued their assets and loans while part of this sum was to be passed as in bad loans.   Source: Reuters
Priscilla Camryn By: Priscilla Camryn
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