The Eurozone states will support banks which failed the stress-test. It is announced by Reuters with reference to the EU’s authority project. Test results are due to be reported on July 15.
European countries will grant the financial aid to those credit organizations which failed the stress-tests and cannot raise capital from investors within six month period. The papers describing the terms of the government grant is to be approved by the EU finance ministers on Tuesday (July 12).
The European Banking Authority will estimate the ability of 91 major European banks to withstand the worsening of economic situation. The test conditions reckon, in particular, that only banks that manage to preserve stability if economic activity of Eurozone decreases by 0.5%, stock markets fall by 15% and interbank lending rate increases by 125 basis points will pass the test.
Recent tests are more rigorous than those of 2010 which only few banks failed.
