New #EU #Banking Stress Test Release Plan
Today, the Committee of European Banking Supervisors (CEBS) announced a new release plan for stress test results. The planned two week delay between release of aggregated results by CEBS (23 July) and bank-specific results by individual regulators and banks (first week of August) has been scrapped. Instead, CEBS will release aggregated results at 1800 hours. Individual regulators and banks have 30 minutes to release specific results. Then, at 1830 hours, CEBS will release specific results with links to individual bank and/or national regulator websites.
The Risk Telescope last week explored in some depth the potential adverse market dynamics that seemed likely to arise from the EU’s planned two-week hiatus between release of aggregated results by CEBS and release of disaggregated results by individual Member States and banks in early August. The new release plan eliminates many of those potential adverse dynamics and focuses attention where it belongs: on the details and rigor of the tests themselves.
