2011 stress tests will struggle for credibility, say experts

2011 stress tests will struggle for credibility

Proposals for stress tests in February next year must work to ensure they maintain credibility in the eyes of financial markets after what is perceived to be a failed round in July 2010, say experts.

"The first round of stress tests were either manipulated or very badly done," says Rym Ayadi, senior research fellow at the Centre for European Policy Studies (Ceps). She cites the failure of the proposals to test the whole range of institution's assets, looking only at their trading books, while