ECB Leaves Investors Guessing on Some Banks’ Stress-Test Results
- ECB’s silence contrasts with practice at other regulators
- Lack of transparency means investors assume the worst
Why Stress Tests Give Little Relief to Europe's Banks
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The European Central Bank is letting a pall of secrecy hang over the health of some of the continent’s banks.
While fellow regulator the European Banking Authority published results of stress tests for 51 banks from Banca Monte dei Paschi di Siena SpA to Deutsche Bank AG, the ECB decided against publicly disclosing the outcome of its own parallel test for 56 additional banks. The ECB, the continent’s top banking regulator, instead left it up to lenders whether they made public information on capital levels, loan quality and leverage.