ECONOMY

ECB to reveal stress test criteria by end-January

European Central Bank chief Mario Draghi said on Friday that the key criteria for “stress tests” for European banks will be published by the end of January.

“By end-January, we expect to announce the key parameters of the stress test exercise together with the European Banking Authority (EBA),” Draghi told a banking congress.

In preparation for its new duties as Europe’s single banking supervisor, the European Central Bank is gearing up for a year-long audit of the strength of big eurozone banks to withstand crisis.

The in-depth examination will “provide the first step toward building confidence in euro-area banks, and between euro-area countries and their competent authorities,” the ECB chief said.

The list of banks accounts for 85 percent of the eurozone banking system and includes the sector’s biggest names, which include Deutsche Bank, BNP Paribas, UBS, ABN AMRO, Banco Santander and Bank of Cyprus.

[AFP]