Category: International
A third of European banks unable to face scenario of economy deterioration
31/07/2009, by Adam Walder
According to a recent study, a third of European bank are unable to support a "stress test".
According to a study by French Alpha Value surveyed 31 European banks, concluded that one third of the major European financial institutions face problems of liquidity, estimated at 31 billion euros as the amount needed to stabilise the liquidity of the various banks.
The study tested the ability of many banks in a crisis scenario "stress test" and came to the conclusion that in cases of strong degradation of the economic and financial situation, the need for capital could even reach 123 billion.
The findings of this study was immediately criticised by officials of Dexia, devalued the numbers and the methods used in the "stress test".
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