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  Stresses tests? “MARKETING " ????

  "in a coordinated and concerted between us to maximize the effects,"  according to Christine Lagarde.

The rich countries are not able to support their banking system anymore. Therefore banks should be able to rely on their own capital to cope with any major crisis. These Stress Tests when first conceived were the only way to test the Banks’ resistance and to anticipate their failure.

European banks passed the test with flying colours last Friday. The well known stress tests are a simulation of an extreme crisis within the banking system and only 7 out of 91 have failed the test. Great score…however some economists undermine the tests such as Philippe Dessertine, professor of finances and director for the institute of high finance and John Kay (Financial Times). “These stress tests are only tools of communication”.The only purpose is to reassure.

Banks self rated the tests, and delivered its results to the National Central Bank, which is then transmitted to the BCE.

Some countries are suspected of cheating in order to save face. The Spanish central bank seemed to have included their emergency funds as part of their overall capital…

what happens with one or more countries default ? Not in stress test !!!

and The Basel Committee inflects positions: definition of Tier One and liquidity ratios very restrictive in the original version amended.Loans, to individuals and SMEs: weighting more favorable.Leverage ratio,3% during a test period from 1 January 2013 to

1 January 2017, with a publication from 2015, adjustments in the second half of 2017, and inclusion in Tier one: 3 1 January 2018.

BUT WHY Europe’s top bankers are discussing   ? 

BUT: