Banks face "tougher" stress-tests

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8 April 2011, last updated at 15: 30 GMT Allied Irish Bank had to be rescued out after passing the test Europe regulator banking which has said that banks of strict tests in its latest review of their finances to be.

It contains some Irish banks, including one that passed the last year's test, but later a Government needed Bail-Out.

The regulatory authority would like to make sure that banks have to resist enough capital more difficult economic scenarios.

The new tests include 90 banks including Royal Bank of Scotland, HSBC, Barclays and Lloyds banking group.

Barclays mentby earlier it record euro ($1 billion; £ 1.1 billion) to improve his Spanish Division their reserves after Government stress tests in Spain.

Stricter tests

In the 90 contain some banks are not tested before - such as the Irish Republic Irish life & permanent (IL & P) and two Norwegian banks.

IL & P ordered billion to increase euro last month after Government stress tests in the Republic.

Many banks are previously tested again, such as Allied Irish Bank contain. It was passed last time, but later a Government needed Bail-Out.

The tests described the European banking authority (EBA) examine how banks would fare economic conditions should deteriorate further.

"The scenarios are provided by the EBA strict," said Peter Hahn CASS business school, BBC News.

These include a European recession and a decrease of 15% in the European equity markets.

"they definitely more credible this time as last time;" "be it could be worse", said Mr Hahn.

Standard not tested, but despite widespread concern to pay countries skills were back, which will not look at their debts, the test what would happen, each country standard.

In all cases, banks should maintain a quota to a 5% animal. The term refers to reserves that could use banks to cope with losses.

At least 10% in the reserve, ceased said to ensure that they have banks in the United Kingdom, while the new Basel III international rules say that banks must hold 7% from 2013.

Certain forms of possession some German banks can not counted which means this time - that they may have extra cash to increase.

Boost cash

A survey of investment bank Morgan Stanley found that less than 10 banks were expected to not the test.

Those who do increase capital to sell assets or to reduce their loans.

Banks, who fear that they fail the test are expected to be in advance to raise money.

Three banks, Germany's Commerzbank, Italy Intesa Sanpaolo and Banca Monte dei Paschi di Siena have already announced, reserves, plans to increase their capital.

The results of the test are expected in June.