GREY:INNHF - Post by User
Post by
sueronon Jul 15, 2011 3:27pm
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Post# 18836896
European Bank Test..
European Bank Test..July 15 (AP)
Eight of 90 European banks have flunked stress tests that project how they would fare in another recession, and 16 more barely passed, Europe’s banking regulator said Friday.
The test, run by national banking regulators, simulated what would happen to bank finances during a recession where growth falls more than 4 percentage points below EU forecasts. For the 17-country eurozone, that would be a drop of 0.5% this year and 0.2% next year.
Some said the tests were not tough enough because they did not include a scenario in which Greece defaults on its government bonds. That is considered a key risk for Europe’s economy.