Banks that fail EU stress tests must submit capital plans by end September 2011 or sooner – EU doc

  • Once submitted, capitalisation plans to be implemented within a further 3 months or sooner
  • Banks that come close to failing will be subject to “reinforced scrutiny” to protect against further capital deterioration
  • If a failing bank presents no credible plan by deadline, its government to stand ready with steps to maintain fiscal stability
  • If measures unsuccessful and deterioration at a bank likely to endanger systemic stability, process of restructuring and resolution will be initiated

These details came out on the wires while I was gone. Think the talk of banks failing stress tests will have been partly to blame for the euro slippage.

Featured Videos