Britain’s four leading banks viz. Royal Bank of Scotland, HSBC, Lloyds and Barclays have passed stress tests.
RBS, HSBC, Lloyds and Barclays were the part of the so-called stress tests, which were conducted over 91 major banks across Europe to determine if the European banks are strong enough to survive any fresh economic crisis or not.
The Committee of European Banking Supervisors (CEBS) tested how Europe’s leading lenders would survive if another global economic crisis emerges. Greek crisis has also threatened the recovery of the European banks.
In order to pass the stress tests, banks had to prove that they possessed enough capital to face any future downturn in the market.
However, the positive outcome of the stress test failed to convince investors, who believe that the measures to test bank’s strength were simply not tough enough.
Commenting on the results, Greg Salvaggio from Tempus Consulting said, “Obviously, the majority of the banks are passing, but what the price action and the market is telling us is no-one believes in the strength of the tests.”
Seven banks out of 91 failed the tests.
- Gentle Electrical Stimulation May Help in Improving Maths Skills
- Mutated BRCA1 Gene Increases Breast Cancer Risk
- Research Finds Huge Increase in Type-2 Diabetes, Under-40 Hardest Hit
- Step Forward in IVF Treatment in 30 Can Mount up Baby Production Three-times
- David Cameron Blamed for ‘Scaremongering’ Over Health Tourism