Thursday, July 8, 2010

European bank stress tests – at ~2pmET on Wed, the CEBS, published some details on the bank stress tests currently underway on the region’s 91 largest institutions $CS $DB

European bank stress tests – at ~2pmET on Wed, the CEBS (Committee of European Banking Supervisors) published some details on the bank stress tests currently underway on the region’s 91 largest institutions. Investors were hoping for some specifics on the different parameters of the test (i.e. eco growth, unemployment, inflation, delinquencies, housing prices, sovereign debt haircuts, etc.) but the statement was pretty sparse on details. For growth, the CEBS only said it would assume a 300bp deviation compared to the EU’s forecasts over the two year time horizon. On the sovereign risk assumptions, CEBS said only that it would assume deteriorations beyond the conditions seen in the market in May (although it didn’t provide specifics). http://www.c-ebs.org/documents/Publications/Other- Publications/Others/2010/ST_FollowupPR.aspx

No comments:

Post a Comment