Stress tests will show banking industry is healthy, French minister claims

6 July 2010

The results of bank stress tests will show that the eurozone’s financial services industry is in good health, a French politician has stated.

Christine Lagarde, France’s finance minister, made the comments at a conference as she announced that the test results will be unveiled on July 23rd.

Financial regulators and watchdogs have been running the tests to quell investor concerns over the stability of the banking sector within the territory.

Banks are now thought to be facing additional pressures from further taxes, regulation and stricter rules surrounding capital requirements.

Ms Lagarde said: “You will soon be seeing the number of banks that will be submitted to the stress test, you will have better understanding of the exact criteria we apply and of how heavily we stress the system.”

“Banks in Europe are solid and healthy,” she added.

The stress tests are expected to include approximately 100 of the largest lenders within the eurozone region.

Previously, the Financial Services Authority (FSA) claimed that it is not worried over what will be revealed about the health of UK banks by the tests.

Adair Turner, chairman of the FSA, was quoted by the Wall Street Journal as saying that rigorous domestic analysis on British financial institutions has been ongoing since the start of 2009.

By Jim Ottewill

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