News / Europe

Seven of 91 European Banks Fail 'Stress Test'

TEXT SIZE - +

European banking regulators say seven of 91 banks do not have enough cash to survive another recession.

The London-based Committee of European Banking Supervisors announced the results Friday of its so-called stress tests.

The tests were designed to help reassure investors and the public about the stability of the financial system even as many countries confront rising debt levels.  Investors worry that many banks have loaned money to European governments and could fail if governments begin defaulting on the loans.

Friday's report said the seven banks that failed the stress tests need to raise a combined $4.5 billion.  They include Germany's Hypo Real Estate, Greece's ATE Bank and five Spanish regional banks.

Hypo Real Estate has already been taken over by the German government.

The Committee of European Banking Supervisors is made up of representatives from banking authorities and central banks of the European Union.  

Some investors have been worrying about the reliability of the tests, but the London-based committee said in a statement that the results "confirm the overall resilience of the EU banking system."

French Finance Minister Christine Lagarde also praised the stress tests, telling the Associated Press the tests were tough and "very comprehensive."  On Wednesday, German Chancellor Angela Merkel defended the tests, calling the conditions realistic.

The United States conducted its own so-called stress tests of its major banks last year to "reassure" the public about the economic strength of key institutions.  Ten banks were told to raise funds so that they could survive in case the U.S. economy declines further.

Meanwhile, reports from Germany and Britain Friday show signs Europe's economy is growing further.

A survey of business leaders at 7,000 firms found business sentiment in Germany rose to its highest level in three years in July.

The Munich-based Ifo Institute said the increase from June to July is the largest in 20 years, describing Europe's largest economy as being in "a party mood."

Separately, Britain said its gross domestic product - the total of all the goods and services produced in the country - rose more than one percent in the three months ending in June.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid