Deutsche Bank CEO: Publishing stress test results may be dangerous

11 June 2010

Josef Ackermann, the chief executive officer of Deutsche Bank, has warned that publishing the results of stress tests conducted on European financial institutions could be "very, very dangerous".

Speaking at a conference in Vienna in his role as chairman of the Institute of International Finance, Mr Ackermann suggested that support mechanisms should be in place before such a course of action is taken, reports Bloomberg.

"If we want to disclose the results of stress testing, then we must have backstop facilities in place," he stated.

"Otherwise the uncertainties and instability of the market will increase."

The Deutsche Bank chief added that he is not against the idea of stress tests "in principle".

European Union (EU) regulators are currently carrying out examinations on banks in the region, with the results due to be published later this month.

Earlier this week, Michel Barnier, internal market commissioner for the EU, pledged to persist with the introduction of a new banking levy in the region, despite opposition from some G20 members meaning a global tax now looks unlikely, reported the Financial Times.

By Claire Archer

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