Members of the European Union engaged in heavy discussion Saturday regarding Landesbanken – the German state owned bank and various Spanish savings banks, as to whether these banks should be included in a fresh round of stress tests or not.
The discussions will ponder the aspects of including the sovereign debt default in the stress test, while deciding a date for the announcement of test results. Since, the discussions were of private nature, no names were revealed to the public or news reporters.
In an interview, Commissioner Barnier – said that he believes there should be an element of transparency involved in these discussions. EU leaders are going to disclose the performance of these banks in a stress test, through an open publication.
Angela Merkel – the German Chancellor’s government is not going to pressurize banks for the release of test results for general public. The discussions are going to continue through tomorrow and they include different high profile officials from the European Central Bank, the European Commission and the European Banking Supervisions. The conclusions of these discussions are going to be discussed in a meeting at Brussels, by the European Finance Ministers.
The stress tests are being carried out through a collaboration of ECB and the Committee of European Banking Supervisors. The role of CEBS is the coordination of national banking authorities and the creation of policy recommendations to the EU on financial regulation.