Disclosure of stress testing results aims to curb bank fears.
It’s open kimono time for European banks. On Thursday the EU agreed to finally follow the US lead and disclose stress-test results for top banks. According to Herman Van Rompuy, EU president, the test results of 25 European banks would be published in the second half of July. Most national banking authorities are also seeking pledges of support for any bank that failed the tests, which would include the ability to draw on the EU’s recently created EUR750mn backstop facility.