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.
© Bruegel