The 2011 European Union bank stress test
What was the 2011 European Union bank stress test?
The 2011 European Union bank stress test was an analysis of the resilience and robustness of the financial arrangements within 90 important banking institutions across the EU. It was the third such test since the financial crisis that erupted in 2008.
Where have you heard about the 2011 European Union bank stress test?
As an investor, you may have been made aware of the 2011 European Union bank stress test in relation to banks in which you are a shareholder. Such stress tests are referred to more generally as a check on the health of the banking system.
What you need to know about the 2011 European Union bank stress test.
The 2011 European Union bank stress test was conducted in relation to 90 banks in 21 countries and was described by the European Banking Authority (EBA) as a 'comprehensive analysis...to deliver unprecedented transparency about the EU banking system and in turn reduce market uncertainty'. The test was base on 'what-if?' scenarios to see how banks could respond to a renewed crisis. 'It is designed to be deliberately severe,' said the EBA. But it was not a forecast, nor was passing the test a guarantee of the stability of a bank. Eight banks failed the test - five in Spain, two in Greece and one in Austria.