ECB insists stress tests are credible
ECB denies claims stress test scenarios were not severe enough
Despite questions about whether Europe’s bank stress tests were credible due to their lack of stringency, the European Central Bank (ECB) has insisted the stress scenarios employed were rigorous enough.
Just seven banks of 91 failed the tests, compared with expectations from Goldman Sachs analysts that 10 banks would fail. The total capital shortfall was €3.5 billion ($4.5 billion), far less than the €37.6 billion forecast by Goldman.
The divergence is likely to fuel criticism about whether the
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