EU Pledges Tougher Stress Tests, Seeks Bonus Curbs

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Europe’s next wave of bank stress tests will be tougher than exams last year, taking sovereign-debt risk and liquidity into account, the region’s financial-services chief said.

“We need more stringent and more reliable tests,” European Union Financial Services Commissioner Michel Barnier told reporters following a meeting of EU finance ministers in Brussels today. “There was a general agreement that they should be marked by total transparency taking into account sovereign risk.”