This is the opinion of sources from the Treasury, while it is expected that some institutions across Europe might fail the programme, This is Money reports.
Banks are to be tested on a number of risks, including possible debt defaults by countries such as Greece, as well as a house price drop of 18 per cent.
They will be expected to demonstrate that they have the core capital reserves in place that amount to at least five per cent of their total assets should they make considerable losses on bad loans.
Banks that fail the assessments will be given three months to develop an improvement strategy.
The EBA came into being on January 1st this year and has taken over responsibilities from the Committee of European Banking Supervisors.
By Claire Archer