News Column

Europe's banks told to let light into every unit around the globe

August 21, 2014

TIM WALLACE



EUROPEAN banks must publish a break down of their financial strength in each country and in each different business unit, the European Banking Authority (EBA) said yesterday.


The biggest banks face stress tests to see if they have rebuilt their capital buffers and cut risk-taking since the financial crisis.


The templates published yesterday showed the banks will publish their financial data from the end of 2013, then compare it to their predicted position in 2016 after a fictional crisis.


The lenders will publish data on the position of their corporate lending, to small and large businesses. And they will detail their retail lending, including debt loans and unsecured credit.


The tests hope to put an end to doubts about the strength of Europe's banks, in the aftermath of the Greek and Cypriot crises, and this summer's Portuguese Banco Espirito Santo breakup.


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Source: City A.M. (UK)


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