New stress tests banks to be held in Europe in March

The finance ministers of the eurozone countries endorsed the holding of the next round of stress tests of banks in the treatment of the single European currency. The evaluation methodology will be ready in March, and test banks will be completed by the end of May, reports Reuters. Pan-European bank stress tests have been the summer of 2010. Tests undergone in 1991 the largest bank in Europe, which accounted for 65 assets of the European market. Seven of them (five Spanish, one from Germany and Greece) did not validate the level of capital adequacy (data collected as of March 31, 2010). During the upcoming stress test test undergo the same bank in 1991, but the conditions are stricter than in the past year. More stringent requirements will be presented, in particular, that banks pith Tier. Another innovation will take into account not only the trading portfolio of each bank (ie, securities which the bank trades in the market), but the Bank's portfolio as a whole (aggregate of all securities owned by the bank, including those not used in operations in the markets). According to the source, due to the tightening of criteria for adequacy pith Tier European Central Bank predicts an increase in the number of stress tests have failed banks on the results of summer 2010. Source: NEWSru.com