European Central Bank – Stress test into focus

The European Central Bank (ECB) has launched its stress test across the Eurozone’s banks to review the financial standing of these institutions, particularly to gauge their robustness in times of hardship.   However this stress test has been more of a ‘comprehensive compromise’ between financial institutions and the ECB due to the multiple pleas of more leniencies from ECB’s part.   This stress test was launched last year in an attempt to monitor the prevalence of any financial crisis but meanwhile many lacking were noticed from financial institutions.   These deficiencies come mainly from the fact that banks have been unable to provide the required data and their quest for comprises put at stake the credibility of the test.   The European Central Bank nevertheless did not comment over the situation, claiming that the stress test is a thorough one.   The ECB will announce on October 2 the bank which has successfully met up to the test, showing that it has much resistance to avert any financial calamity falling in.   The stress test is a sure way of detecting the shortcomings of the European banks so that they would be able to work on them.   Source: Reuters
Priscilla Camryn By: Priscilla Camryn