UK banks in the clear after European stress tests?
The European Banking Authority (EBA) is due to publish the results of its stress test on European banks on Sunday, but ahead of the official announcement a Spanish news agency has reported that 11 of the 123 banks tested have failed.
Although the report, by Spanish wire EFE, did not name any of the banks that failed, it said the list included three Greek banks, three Italian institutions, two Austrians, one Cypriot and one Belgian bank.
Among the UK banks tested were Barclays, HSBC, Lloyds and RBS, all of which appear to have passed.
After the report emerged there was some confusion over whether it referred to the EBA's stress tests, or an equivalent version by the European Central Bank (ECB), the results of which are also due to be published on Sunday.
But speculation suggested the absence of an Irish institution in the list means it's the EBA's version, after reports published yesterday in the Irish press said "vulnerable" bank Permanent TSB was likely to have failed the ECB's review.
In a statement, the ECB denied the figures came from its tests:
The comprehensive assessment, which consists of an asset quality review and stress tests of bank balance sheets, is not yet completed. No final results have been sent to banks involved. The results will not be final until they are considered by the Governing Council of the European Central Bank on Sunday 26 October, after which they will be published.Until that time, any media reports on the outcome of the tests are by their nature highly speculative.