Results of EU-wide stress tests 'will remain secret'

15 May 2009

The outcomes of stress tests on financial institutions in the European Union (EU) will be kept confidential, the Committee of European Banking Supervisors (CEBS) has said.

Under the EU-wide exercise, national supervisors will use common scenarios developed by CEBS to determine the resilience of Europe's banks in the event of further financial shocks.

CEBS said that unlike the US government's stress tests, the assessments are not designed to identify individual institutions that need to raise more capital, as this is the responsibility of national regulators.

Rather, the tests are intended to increase the level of aggregate information on the EU's financial system available to policymakers and to support the convergence of best practice across the 27-nation bloc.

The tests are expected to be completed by September, CEBS said.

In the US, the government's stress tests of 19 major lenders found that 10 banks - including Citigroup, Bank of America and Morgan Stanley - needed to raise an additional $75 billion to ensure they could withstand a severe economic slump.

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