Trichet to meet European bank heads on stress tests: source

6th July 2010, Comments 0 comments

European Central Bank head Jean-Claude Trichet will meet officials from major European banks on July 21 to discuss the outcome of "stress tests" on their financial health, a banking source said Tuesday.

An official of the Frankfurt-based ECB declined to comment on the report.

French Economy Minister Christine Lagarde has said the results of the stress tests will be made public "around July 23," a day after a regular meeting of the ECB board of governors.

The tests, to be performed on an estimated 100 European banks, are to determine a bank's capacity to withstand financial or economic shocks.

The results of tests carried out last year on 22 banks have not been made public but European Union finance have said the banks tested were shown to be sufficiently capitalised.

Until recently, several eurozone states, notably Spain and Germany, had opposed publication of the latest results.

But mounting fears for the solvency of Spanish lenders prompted Spanish authorities to retract their opposition, a stand later adopted by Germany and endorsed by EU leaders on June 17.

© 2010 AFP

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