EU Banks Urged to Boost Capital as Stress Test Doubts Voiced

European banks are being urged to boost their ability to withstand losses before the conclusion of a stress test that is drawing criticism for its design.

Axel Weber, the chairman of Zurich-based UBS AG and a former head of Germany’s Bundesbank, said yesterday that stress-testing banks that have depleted capital is akin to expecting a patient recovering from a heart attack to pass a rigorous physical exam. Moody’s Analytics Inc. said last week that the tests aren’t internally consistent.