All Irish banks are expected to pass the new stress tests, unlike banks in the other bailed-out nations, according to The Independent.
Sources reportedly told the Irish paper they expect all of its banks to pass the stress tests “comfortably.”
The tests are designed to see if banks have enough capital to withstand economic shocks, though there are those who view the tests as a ‘sham’ market exercise to restore confidence rather than a real test of a bank’s strength. Last year, Allied Irish Bank passed the stress test but needed to be bailed out by the government only a few months later.
Reuters expects between 5-15 banks to fail the stress tests, with the failures coming from Greece, Portugal, Spain and Germany.
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