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Stress tests - Erste Bank and RZB on the list

Published: July 8, 2010; 00:00 · (Vindobona)

91 European banks will have to undergo stress tests of European regulators. Two Austrian institutions will be tested as well.

Stress tests - Erste Bank and RZB on the list / Picture: © Vindobona.org

A document of the Association of European Banking Supervisors (CEBS) states that 91 institutions will undergo stress tests. The participating financial institutions represent 65 percent of the EU banking sector.

Two Austrian banks, Erste Group Bank AG Austria, and Raiffeisen Zentralbank Austria AG (RZB), will also be tested. The results will be published on July 23rd.

14 German financial institutions are also on the list, for example Deutsche Bank, and the government-backed institutions, Commerzbank and Hypo Real Estate.

According to the German Bundesbank all German banks have agreed to participate in the tests.

Survivability is investigated

The banks stress test assesses whether institutions survive in adverse market or economic downturns. The tests are to ensure greater transparency and dam speculation in the markets. The results of the so-called stress tests will be announced on July 23. To avoid the negative speculation, institutions are unlikely to refuse publication of the results, even though they remain the right to do so.

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