European Union officials said Tuesday that the EU plans to conduct confidential stress tests of its financial institutions by September. The individual test results will be made available privately to banks, although the public will only be allowed to view the aggregate data, not the results for each bank.
The European tests take on a more macro-prudential approach, assessing the strength of the banking sector as a whole rather than the capital needs of individual banks. The tests will be run by the Committee of European Banking Supervisors in order to identify potential problems for the still fragile financial markets.
The goal is not to determine a capital sum for banks, but rather to identify the risks, the EU said.
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