Stress Tests ‘Raised More Questions Than They Answered’ Says City Expert

Today’s European Central Bank (ECB) stress tests have posed more questions than they have answered, according to a City expert.

Mark O’Sullivan, director of dealing at leading foreign exchange firm Currencies Direct, said: “As expected a handful of small Spanish unlisted saving banks and a Greek bank have failed the EU bank stress tests. What seems to have occurred is a compromise amongst European banking regulators, with many questioning if the bar had been set way to low in testing the European banking sector.

“It seems the tests may have raised more questions than they have answered and in the coming weeks it will be the interbank lending markets that will have the real answer as to whether real confidence has returned to the European banks.”