According to the Committee if European Banking Supervisors, stress tests applied on 91 European banks will cover three fields. Banks will announce their Tier 1 capital ratios, a gauge of financial strength, an adverse scenario, and Sovereign shock which will reveal the forecasted losses on the back of the sovereign debt crisis spreading in Europe.

The tests will assess bank's ability to absorb financial shocks and thereby the status of the financial system. Results will be announced on July 23.