ECB has announced results concerning 130 European banks

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ECB
« Not too tough, not too lenient », is the response to the European central Bank’s stress tests on the 123 biggest European banks.

The stress tests are used to test solidarity of a bank’s balance in case of economic crises. These tests should anticipate the worst case.

Some banks have failed the tests, whereas others have been reassured. The sector is on the mend. All four UK banks passed the tests. In London, Lloyds Banking Group, have avoided narrowly the stress tests. In France, only one bank out of thirteen has failed the tests.

In Milan, two Italian banks were suspended. Greece, Cyprus and Portugal are worried.

Twenty five banks out of hundred thirty tested by the ECB, will have to submit a recovery plan.

If the bank cannot recover, taxpayers or the State, will have to contribute to save the bank concerned by the recovery plan.

 

By BELHAMSALI Saïd, IEJ 3E

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