2011 European Union bank stress test

A European Union-wide banking stress test has been conducted by the Committee of European Banking Supervisors every year since 2009. The second instance (2010 European Union banking stress test exercise) was performed in July 2010. This third round was carried out with results published in July 2011. The Council of the European Union (in its economic and financial – ECOFIN – configuration) mandated that Committee so to do, in the aftermath of the global financial crisis which started in 2007.

2011 stress test results

The results for the 2011 exercises were published on 15 July.^[1] Eight out of 90 banks failed the test—five in Spain, two in Greece and one in Austria.^[2] Spain also is one of the leading countries in the list of approved banks (20), because it put up almost all of its financial sector (95 percent, against an average of about 60 percent).^[3]

The test is controversial, because Spain and Germany have complained the stress tests excluded dynamic provisions recognised by local regulators.^[4] In fact, a German bank didn't pass the test but they refused to publish its data and therefore it is not included in the official list

See also

• List of bank stress tests
• European System of Financial Supervisors
• Supervisory Capital Assessment Program, a similar exercise in the United States of America

References

1. EUROPEAN BANKING AUTHORITY: 2011 EU-WIDE STRESS TEST AGGREGATE REPORT; 2011 EU-WIDE STRESS TESTING EXERCISE
2. Eight out of 90 banks in Europe fail stress-test, five of them from Spain, MercoPress
3. Spain takes brunt of stress test failures, Financial Times.
4. Stress Tests Pressure 24 Banks to Raise Capital, Bloomberg

External links

• CEBS press release on the stress tests
• Joint press release by the CEBS, the ECB, and the European Commission on the stress tests
• Summary report of the stress tests
• OECD: The EU Stress Test and Sovereign Debt Exposures