EBA stress tests: adverse scenario toughened up

The European Banking Authority (EBA) has toughened up the stress scenario in its latest round of banking industry health-checks, after last year's exercise - managed by EBA forerunner, the Committee of European Banking Supervisors - was derided as too easy to pass.

European banks will test their end-2010 balance sheets against both a baseline economic scenario of moderate annual growth over the next two years in the EU, and against an adverse scenario of flat or negative growth. Under the