Stress Tests Don’t Have to Cause a Run on Banks
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May 31 (Bloomberg) -- U.S. and European banking regulatorsare conducting stress tests to determine whether financialinstitutions have enough capital to sustain losses as a resultof adverse economic conditions.
A critical question is whether these results should be madepublic, and if so, at what level of detail. The answer is thatregulators should be mindful of significant pitfalls.