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Commentary by Neil Williamson; Head of EMEA Credit Research at Aberdeen Asset Management
CAN DRAGHI TAKE THE ‘STRESS’ OUT OF THE STRESS TESTS?
Nearly two years ago Mario Draghi stated that the European Central Bank (ECB) would do “whatever it takes”. The question is now whether the ECB will be able to do whatever it takes to put the banking crisis behind it. This month sees the publication of the eagerly anticipated scenarios and methodology for the forthcoming EU wide stress test, critical for the credibility of central bank’s assessment of the strength of the eurozone’s banking system. The exercise, which aims to establish banks’ ability to withstand a challenging downturn in economic fortunes, will follow the “asset...
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