Financial Stability Board Chairman Welcomes European Bank Stress Tests

Financial Stability Board Chairman Mario Draghi made the following statement today:

“The FSB welcomes the release today of the second EU-wide stress test results. The results provide additional clarity and transparency on the strength of the European banking sector and the 91 major banks that have participated in the exercise.

As the FSB has highlighted in the past, regulatory stress tests are a central part of the process of improving transparency about risk exposures, supporting market functioning and facilitating the repair of bank balance sheets.

By adopting a clear and thorough methodology based on severe scenarios, providing detailed bank-by-bank results and announcing, where necessary, remedial actions to strengthen the capital position of individual banks, the EU stress test exercise is an important contribution to bolstering confidence in the European banking system and strengthening the resilience and robustness of the global financial system. The FSB will continue to play its part in strengthening the system by pressing ahead with the key wider regulatory reform agenda."