The European Banking Authority will publish report of how much capital lenders should raise to absorb losses from euro-area bonds. The results of the stress are scheduled to be released today at 6 p.m. central European time. The publication will coincide with the start of a European Union summit in Brussels that will address the region’s sovereign-debt problems.
Some of the German and Italian banks criticize the test methods and timing, arguing that EBA risks contributing to already existing tension in euro-area and it can further prevent the recovery of Europe.
Earlier, EBA estimated that the financial institutions need 106 billion euros ($142 billion) to reach a goal of holding 9 percent of so-called core Tier 1 capital by mid-2012, after marking their sovereign debt to market prices.
