ECONOMY

EU banking watchdog launches stress test, Greek big four exempt

eu-banking-watchdog-launches-stress-test-greek-big-four-exempt

European Union banks will be tested on their ability to raise funds in thin bond markets in a shrinking economy hit by tumbling commodities and property prices, the bloc’s banking watchdog said on Wednesday.

The European Banking Authority’s (EBA) latest health check, the results of which will be published in the third quarter, will spare lenders from being given a simple pass or fail mark.

The ECB will also conduct its own separate stress test on 60 eurozone lenders that are not included in the list of banks the EBA is testing. The Frankfurt-based Central Bank will not publish the results of its own test.

Greece’s four largest banks, Portugal’s Novo Banco and Belgium’s Bank Degroof will be exempt, along with all other lenders that were checked last year.

[Reuters]