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Bankers worried over stress tests

Senior bankers across Europe are worried that markets could misinterpret the outcome of a test of how resilient European banks are to economic shocks.

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Source: Reuters


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Senior bankers and regulators across Europe are worried that markets could misinterpret the outcome of a test of how resilient European banks are to economic shocks, the Financial Times said on Monday.

The paper said board members at banks in the UK, France and Germany, who spoke on condition of anonymity, had reservations about the way in which the stress test had been conducted.

The FT said the banks in question are considered to be among those that will pass the test.

"It is not a question of whether we will pass," the FT quoted one finance director as saying.

"It is that the market will compare our stressed capital ratio with others that have been calculated in an entirely different but untransparent way."

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Earlier this month Europe listed 91 banks taking part in financial stress tests -- including many regional banks where markets suspect most of the sore spots are -- as it seeks to restore confidence in the sector.

The list covers banks such as BNP Paribas , HSBC , Deutsche Bank , Santander , UniCredit and ING.

The paper quoted one bank chief executive as saying that the idea that the market could read the results as a league table of European banks was "a real risk."

The results of the tests will be published on Friday.

(Reporting by Karolina Tagaris; editing by Tomasz Janowski)


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