Nicolas Véron - European bank stress tests: third time lucky?

17 December 2010

Véron talks about European bank stress tests and a few keys to success ahead of the upcoming tests of February 2011.

Systemic bank crises are always difficult to resolve and almost never self-correcting - even with low central-bank rates, retained earnings cannot plug all holes after a major shock. What is needed is a government-led process of ruthless triage, recapitalization, and restructuring of the system’s most important banks.


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