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Spanish Banks to Take Stress Tests as Part of Rescue, Bild Says

The 14 biggest Spanish banks have to undergo a stress test as a condition for the aid from the European Financial Stability Fund, Bild reported citing a memorandum of understanding without clarifying the nature of the document.

Bank restructuring plans will be set up by November on the basis of the results of the test, enabling the banks to live without aid in the medium term, the newspaper said. Banks that receive money from the rescue fund will face pay caps for their board members, the newspaper added.

To contact the reporter on this story: Annette Weisbach in Frankfurt at aweisbach1@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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