- Bank stress tests methodology to be more comprehensive
- To include trading book and banking book
- Methodology to be ready by March
- Tests to encompass same 91 banks as in 2010
- Tests to include stringent tests of core tier 1 capital
- ECB expects more banks to fail 2011 tests than in 2010 because of the liquidity criterion
- IMF to conduct parallel stress tests of banks in Britain, Sweden and Luxembourg
- 2011 tests to include scenarios of specific country shocks
- Tests to be finished by end May, results in Summer
Oh- eh, ECB expects more banks to fail 2011 tests than in 2010 because of liquidity criterion. That’ll have taken a little wind out of the euro’s sails, EUR/USD presently down at 1.3390.
