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Banks will need 6 pct core tier 1 ratio in test-source

Published 07/16/2010, 08:32 AM
Updated 07/16/2010, 08:36 AM

BRUSSELS, July 16 (Reuters) - European Union governments have agreed that a bank will need to show it would have a core tier 1 capital ratio of at least 6 percent under hypothetical adverse conditions to pass stress tests, an EU source said on Friday.

Each of the 91 banks being tested are due to publish their results at 1600 GMT on July 23, and the London-based Committee of European Banking Supervisors (CEBS) will publish a statement summing up the outcome a minute later.

The level of core tier 1 capital will be the most important item, followed by exposure to sovereign. (Reporting by Julien Toyer, writing by Philip Blenkinsop) (Reporting by Philip Blenkinsop)

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