The bank stress tests: a work in progress

Karel Lannoo, Place du Congrès 1 ? B-1000 Brussels ? Tel: (32.2) 229.39.11 ? Fax: (32.2) 219.41.51 ? http://www.ceps.eu

With the publication of the stress test results on 23 July, the EU managed to turn the tide of growing uncertainty about the state of the European banking sector. National supervisory authorities in the EU demonstrated, probably for the first time in EU history, that they can work together effectively, under tight deadlines, and jointly analyse the soundness of the European financial system. The coordination by the Committee of European Banking Supervisors (CEBS) has set a standard for what the new European Banking Authority (EBA) should become, in close cooperation with the ECB and the European Commission. The priority now should be to make this a permanent and even more European initiative, to further harmonise the standards and coverage, and refine the findings.