Deadline set for EU countries’ failing banks plan

European governments must put in place emergency bank recapitalisation mechanisms before June 2011, according to Andrea Enria, chairman of the European Banking Authority on the the 17 March 2011.

He said that he was determined that each country should be in a position to correct capital shortfalls at any banks that failed the imminent stress tests, whose results were due to be announced in June 2011.

On the 18 March 2011 the European Banking Authority (EBA) published documents explaining the scenarios and methodology for its 2011 EU-wide stress test, which will be applied on a wide sample of European banks covering over 60% of total EU banking assets.

ESO: Background information: Regulators taking blinkered approach to stress tests http://www.europeansources.info/record/regulators-taking-blinkered-approach-to-stress-tests/

EBA: Press Release, 18.3.11: The EBA publishes details of its stress test scenarios and methodology http://www.eba.europa.eu/News--Communications/Year/2011/The-EBA-publishes-details-of-its-stress-test-scena.aspx

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