FRANKFURT (MNI) – European Central Bank (ECB) Governing Council
member Mario Draghi, who also heads the Financial Stability Board (FSB),
made the following statement today on the European Banks’ stress tests:
The FSB welcomes the release today of the second EU-wide stress
test results. The results provide additional clarity and transparency on
the strength of the European banking sector and the 91 major banks that
have participated in the exercise.
As the FSB has highlighted in the past, regulatory stress tests are
a central part of the process of improving transparency about risk
exposures, supporting market functioning and facilitating the repair of
bank balance sheets.
By adopting a clear and thorough methodology based on severe
scenarios, providing detailed bank-by-bank results and announcing, where
necessary, remedial actions to strengthen the capital position of
individual banks, the EU stress test exercise is an important
contribution to bolstering confidence in the European banking system and
strengthening the resilience and robustness of the global financial
system. The FSB will continue to play its part in strengthening the
system by pressing ahead with the key wider regulatory reform agenda.
[TOPICS: M$$EC$,M$X$$$,M$$CR$,MT$$$$]