PARIS - The European banking regulator Wednesday Said That It Would start a new health check Of The region's banks and Friday we publish Would The results in June. It aussi Announced The Appointment of first chief icts.
The Test Will Be Conducted one has "broad number" of European banks and "will take SEVERAL months to run," the European Banking Authority, or EBA, Said in a statement.
Such stress tests, Measuring Banks' Ability to Withstand Economic shocks, Have Been Carried Out Twice After the Financial Crisis Struck goal failed to win investor confidence. Since The Last Round, published in July, balance sheet Further Have Problems emerged, notably at Spanish and Irish lenders.
The tests this year Will Be Run Against Two hypothetical scenarios économique: a "baseline" and an "enemy" Macroeconomic scenario to Assess The solvency of The Banks Involved.The opposite scenario, designed by The European Central Bank, Will Incorporate a "significant deviation From The baseline forecasts and country-specific shocks are real estate Prices, Interest Rates and sovereign debt prices.
The banking authority "Said It Would Provide Banks With Detail of the scenarios by The End of this week, after Which There Will Be a Period of feedback. The regulator plans to publish in full scenario The Macroeconomics, ALONGSIDE the Sample of Banks Involved, on March 18. Then it Expects to Provide more details On The Principles of the Methodology in April.
The regulator Said It Was Still discussing with Government "Remedial Measures That backstop member states Will put in place to address" any Weaknesses thats the May reveal stress test. "
European Officials are eager to Avoid Mishaps That Were Made in the exercise last year.The French economy minister Christine Lagarde Recently Said: "We Need to Improve Overall The Credibility Of The Process, And That includes communication range, scope, a combination of bottom-up, top-down quality control."
In parallel, European Supervisors are Conducting What are Known as liquidity tests.
Detailed examinations are testing thesis of a bank's liquid assets, Which Are the reserves of readily available assets and cash That Can Be Used to Pay Off at a Given Time Liabilities.
But The results published Will not Be Because Of Their sensitivity And The Fact That They Are Extremely Difficult to interpret. Theys changes from day to day and are hard to Harmonize Given the Range of accounting standards and balance sheet structures Across the region bad credit unsecured personal loans.
"It's impossible to Go Public With this data," Said a European regulator, Who Was not permitted to speak Publicly."There Would Be Too Much Information for speculator."
The statement Thursday did "not how whether The stress test results assessed is gold Would Be Audited by an external body, year after That has-been debated by European policy makers. Such auditor Year Could Be a private firm public entity gold Like the Bank for International Settlements.
In A Separate operation, the International Monetary Fund this year IS What It calls Conducting Financial Sector Assessment Programs in SEVERAL European economies, Germany and Britain Including. Thesis aussi Will Provide A detailed analysis of The Health of a country's banks. And this month, Federal Reserve plans to let U.S. banks know how THEY DID ITS MOST recent one round of stress tests. The Fed Gave The Bank One Economic scenario - a recession - to test Against Their Book.
Regardless cette Heightened global activity, There Are Still Concerns Among Observers That Broad Complex and Potentially Damaging trading activities Might increasingly migrate away from traditional banks, have steps up regulation, Toward What Is Called the Shadow Banking System, a loose term for gold operations FIRMS That specialize in offshore trading and Often exploiter.
The European Banking Authority Said That a Hungarian regulator, Adam Farkas, HAD ITS Been selected as first executive director. He Will Be in charge of the day-to-day operations and Will Remain in Office for Five Years, With The Possibility of one renewal.
Mr. Farkas Recently Served as chairman Of The Hungarian Financial Supervisory Authority and senior positions has Held at private banks, the National Bank of Hungary & the Budapest Stock Exchange. The appointment Needs to be confirmed by The European Parliament.
The Authority WAS Formed at the Start of this year in Response to the crisis year and in Attempt to Harmonize The Layer of bank supervision in the European Union. Its Board of Supervisors, The main decision-making body, including 27 voting members, one from EACH U.S. gold country.
The Authority has a aussi ESTABLISHED banking group stakeholder That Will Meet Annually oven times to COMMUNICATE WITH lenders. Internally, it has five Committees and one panel to support ITS work.
