Europe News

Euro Stress Test Speculation Unfounded: EBA Chairman

Press reports that the European Banking Authority (EBA) could fail up to 15 European banks as a show of the strength and resilience of the tests are completely unfounded, the EBA’s chairman said on Wednesday.

Keith Brofsky | Photodisc | Getty Images

Speaking to the British Banker’s Association’s (BBA) annual conference in London, Andrea Enria told delegates the EBA was still receiving submissions from the 91 banks that are being tested and that he would be in a position to reveal details over the new few weeks.

However, he dismissed reports on Tuesday that up to 15 banks could fail the stress tests as nothing more than speculation,

"The results have not yet been put together. They have not gone through the final round of quality assurance and peer review," he said.

Last year, only 7 banks failed the EBA’s stress tests, leading to accusations that the tests were too soft and that banks were able to hide the true extent of their exposure to sovereign debt. This year the tests have been made tougher in an effort to combat such accusations.

Enria told the conference EBA supervisors had been granted access to far more information this year, and in fact the disclosures were the most he had ever witnessed in his lifetime as a regulator.