Bank Tests Aren’t ‘Rigorous Enough,’ Oppenheimer Says

Stress tests on European banks were not strict enough and regulators should have taken a broader look, according to Steve Bernstein, chief executive officer of Oppenheimer Investment Asia Ltd.

“The test isn’t rigorous enough. As time goes on, there must be other banks that need to raise more capital,” Bernstein said in an interview in Hong Kong. “The fact that they only look at one part of the portfolio isn’t enough. The test should have looked at the banks’ investment portfolio as well.”