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FSA welcomes stress test results
26 July 2010 at 13:32
The Financial Services Authority (FSA) has welcomed the publication of the results of the EU-wide stress test exercise conducted by the Committee of European Banking Supervisors (CEBS).
According to the regulator, the exercise shows that the UK banks are "well placed" to handle further periods of economic stress, should such an occurrence develop, as outlined in the macro economic parameters detailed by the committee.
"As expected, the outcomes of the stresses demonstrate the preparedness and resilience of the UK banks under unlikely adverse economic scenarios. This resilience is a result of the considerable work that has been undertaken to strengthen UK banks in recent years," the FSA said.
The CEBS stress test is different but complementary to the FSA's stress testing regime, and noted that it will publish the high level results for the UK banks.
It comes after the FSA published its near final rules to strengthen the financial resilience of the credit union sector and reduce the number of credit union failures.
Posted by Tony Miller