Germany backs release of bank stress tests: source
Germany is in favour of releasing the results of so-called stress tests for banks, a government source told AFP on Thursday as eurozone leaders seek to calm rising tension in the sector.
European Union leaders in Brussels would discuss on Thursday how best to publish the results of tests to determine how well equipped banks are to withstand a major event such as default by a key debtor, the source said.
Germany and other European countries have resisted pressure to release the results of tests done on major eurozone banks last year, arguing that markets could misinterpret the findings and turn against the banks.
A similar exercise in the United States is nonetheless credited with having restored confidence in the banking sector.
On Wednesday, the Bank of Spain said it would release information on Spanish banks that have recently become the target of growing market speculation.
"The balance has now shifted from the disadvantages to the advantages of stress tests," the German government source said.
© 2010 AFP