IMF calls on EU to make stress tests more transparent

22 July 2010

The International Monetary Fund (IMF) has called on the EU to make its stress testing procedures more transparent.

Tomorrow (July 23rd 2010) will see the publication of the results of stress tests conducted on 91 European banks, but there are some concerns among analysts that the tests will not fully disclose the exposure of individual banks to sovereign debt in eurozone countries, reports the Telegraph.

According to the IMF, the way the examinations have been conducted may mean questions about the financial health of firms will not be completely dispelled.

"Some uncertainty regarding the stringency of the tests is likely to remain," it stated.

It added that some European authorities have resisted the idea of greater transparency.

"Supervisors felt that disclosure of individual bank results could prove too market sensitive and some national authorities noted legal impediments to publication," the IMF said.

Earlier this month, Jean-Claude Trichet, the president of the European Central Bank, said the publication of the stress test results will help to restore confidence in the eurozone, reported Reuters.

By Tony Aynsley

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