ECB Said to Signal Banks Face Harsher Stress Test Results
- Regulator said to tell banks to prepare for adjustments
- Banks have been benefiting from surge in interest income
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European regulators are telling banks that sailed through an early round of this year’s stress test that the final results will be less rosy.
The European Central Bank has signaled to lenders benefiting from the surge in interest rates to prepare for adjustments in the name of achieving more credible results, the people said, asking not to be identified. Many bankers disagree, saying regulators are seeking a worse outcome to pressure the industry, some of the people said.