Euro zone bank shares tumbled Wednesday, after the European Central Bank (ECB) revealed tough new stress tests for the region's financial institutions.
Mizuho International Chief Economist Ricccardo Barbieri attributed the fall to lack of detail on how the ECB will assess the euro zone's leading banks, coupled with fears the capital limits insisted on in the tests were more stringent than those currently posed by national regulators.
One hundred and twenty-eight banks will undergo an assessment of their risky assets, the quality of their balance sheets, and the amount of capital they hold. This is designed to test their ability to withstand economic difficulties or "stress".
"Now the ECB has to introduce a harmonized model, which will be potentially very complex. Therefore there could be surprises and deleveraging because of it," Barbieri said, following Draghi's interview with CNBC.