Hi Everyone,

I would love to investigate the stories that the recent Cebs stress tests have not been tough enough on European banks.

Is this accurate?
If so, do you think this was a deliberate decision?
In what way could the process have been improved?

If you have an opinion on this, even if it is just to help add some context for us, I would love to hear from you.

Feel free to either post in this discussion, contact me through the site or you can email me directly at mark.sands@incisivemedia.com


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Replies

  • Jim Rogers told CNBC that Stress Test Is just a PR Exercise: http://www.cnbc.com/id/38409464
  • Thanks, Boris. I would certainly love to hear if any of the members of your community agreed.
    As a second point, have Cebs taken enough steps to factor operational risk into their methodology?

    This is obviously largely a credit risk exercise, but Cebs summary report states that "capital requirements for operational risk were also taken into account in the exercise by computing a proxy of year-on-year changes in operating profit of the participating institutions, with the actual capital charge as of year-end of 2009 acting as a floor."

    Is this sufficient or is more consideration needed?
  • Hi Mark,
    Check this article out - looks like a solid analysis. Probably Risk managers in our community can add something from their experience and analysis.

    http://www.actionforex.com/analysis/daily-forex-fundamentals/implic...
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