EU To Toughen Bank Stress Tests

European banking regulators will introduce a “near fail” category into the new stress test process, Financial Times reports. The tests, being administered by the new European Banking Authority (EBA), will begin in April and the results will be made public in June.

The EBA is planning to test the banks against a baseline and an extremely negative macroeconomic situation. It will also test against country-specific shocks on property prices, interest rates and government borrowing.

Click here for the story from Financial Times.