Video: Irish banks pass European stress tests ‘comfortably’
Published 15/07/2011 | 11:13
Irish banks are understood to have passed new European stress tests - the results of which will be published today.
The tests on 90 European banks, including Bank of Ireland, Allied Irish Banks and Irish Life & Permanent, will be made public when markets close later.
But market sources told Independent.ie the trio will pass “comfortably.”
The analysis is designed to assess whether the banks would have enough capital to withstand a hypothetical economic shock.
A previous probe was discredited largely because AIB, having passed the test, was two months later found to require €8bn more to keep it afloat.
This round will be more widely watched as confidence needs to be restored in the banking sector against the backdrop of growing financial woes in countries like Greece, Italy and Spain.
Analysts expect between five and 15 European banks to fail the tests with some regional German institutions considered the most vulnerable.
The number of banks was originally 91.
However, German bank Helaba pulled out on this week as part of a dispute the European Banking Authority and it will announce results separately.
European stock markets opened lower this morning amidst anxiety about the outcome of the stress tests which mark and end to a hectic week in Europe.
Spain's Ibex was down 0.4pc while Italy's FTSE MIB was off 0.5pc.