Baltic breakdown

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In the multitude of reports into the causes of the financial crisis, regulatory bodies, including the Basel Committee on Banking Supervision and the Financial Stability Forum, have cited inadequacies in stress-testing as a key failing of banks. Taking their lead from this, several national regulators recently conducted their own tests to determine whether the banks they supervise will be able to survive a prolonged economic slump.

Swedish regulator Finansinspektionen, for example, carried out str

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