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Bank stress test results due on Friday 
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Legend
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http://www.guardian.co.uk/business/2010 ... lts-friday

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The much-anticipated results of the stress tests of Europe's banks will be published after the markets close on Friday, the Committee of European Banking Supervisors (CEBS) said today.

The markets are keen to learn how the 91 banks which have been subjected to the tests have performed and could be volatile in the run up to the results.

CEBS said it will publish aggregated results in the form of a summary report and main conclusions on its website at 1600 GMT – 5pm local time in the UK. At the same time, the banks and their national supervisors will publish individual results on their own websites. About half an hour later, CEBS added, a summary of the 91 bank-by-bank results will be available on the CEBS website.

Four UK banks – HBSC, Barclays, Royal Bank of Scotland and Lloyds Banking Group – are among the institutions that have been subjected to close scrutiny of their balance sheets to establish if they have enough capital to withstand an economic downturn alongside a sovereign debt crisis.

They only need another €80 billion capital. Well that is assuming that things do not deteriorate. But considering Ireland has had its rating cut again to close to junk levels and a default risk being considered likely, and Hungary also having serious problems paying back it € denominated loans while its own currency the Forint has been devalued. Hungary defaulting will impact particularly on the big German and Austrian banks. Hungary and Ireland are both considered high risks of default and bankruptcy. It would explain why the coalition government are looking at 40% cuts in all departments. In Ireland they had to have three emergency budgets in 18 months, and they are still likely to default.

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Mon Jul 19, 2010 2:13 pm
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