Europe must make its bank “stress tests” more transparent and extend them across more institutions to enhance their credibility, according to the International Monetary Fund.
The results of the stress tests on 91 financial institutions across the European Union, due to be released tomorrow, will assess the banks' ability to withstand renewed economic weakness and bankruptcies in the household, corporate and sovereign sectors.
But some market participants have criticised the lack of information about the scenarios being tested, fuelling suspicions that they are being engineered to produce a favourable outcome.
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