Nicolas Véron: Detailed disclosure is the key to stress-test success
16 July 2010
Bruegel Senior Fellow Nicolas Véron calls for enhanced disclosure of each bank’s exposure to eurozone countries’ sovereign risk, in order to compensate for the absence of sovereign default in the stress scenario.
The European Union has committed to publish the results of stress tests of 91 of its largest banks at the end of next week. In this column published today by eurointelligence.com, Bruegel Senior Fellow Nicolas Véron argues that the success of this unprecedented initiative will be largely determined by the degree of disaggregated detail in the disclosure of results. He also calls for enhanced disclosure of each bank’s exposure to eurozone countries’ sovereign risk, to compensate for the fact that the stress scenario will not include a sovereign default.
© Nicolas Véron
