Bankers to meet ECB ahead of stress test release: sources

20th July 2010, Comments 0 comments

European bank executives are to meet European Central Bank president Jean-Claude Trichet here on Wednesday two days before results of stress tests of 91 European banks are released, bank sources said.

Sources in Milan and Paris have told AFP that financial leaders will take part in a previously scheduled meeting with Trichet that comes two days ahead of long-awaited results on the health of major European Union banks.

The tests to determine if banks can withstand major shocks such as a default by a key borrower should figure high on the agenda, but topics such as broader eurozone economics prospects were also up for discussion, a source said on Tuesday.

A French source had indicated on July 6 that the meeting would take place, and that was confirmed by an Italian source on Tuesday.

Directors of two leading Italian banks, UniCredit and Intesa San Paolo, would attend the Frankfurt gathering, the Italian source said.

When contacted by AFP, an ECB spokesman declined to confirm that the meeting would take place, however.

Financial markets want to know if any major European banks are in trouble, and interbank lending has been throttled by fears that borrowers might not be able to reimburse their loans.

Similar stress tests published in the United States last year are widely credited with having restored confidence in the US banking sector.

© 2010 AFP

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