ECB may ease back on stringent stress test requirement

|By:, SA News Editor

Good news could be in store for European banks as chatter says the ECB is considering just a 6% capital requirement in its stress tests as opposed to the 8% previously promised. A small number of countries aren't even satisfied with 6% and reportedly may press for a lower number.

Previous European bank stress tests are known mostly for giving passing grades to lenders who just a short while later required government bailouts.

Tails in the air today include: Santander (SAN +1.6%), Deutsche Bank (DB +2%), ING (ING +0.9%), BBVA (BBVA +3.4%), Bank of Ireland (IRE -0.6%), and Allied Irish Banks (AIBYY +6.3%).

Related ETF: EUFN