EU banks ‘should factor fines into stress tests’

EU banks should factor in potential fines for past misdeeds when they take part in a regulatory assessment of their financial strength, the bloc’s top banking supervisor said yesterday.

Banks have paid about $6bn (€4.4bn) in settlements for rigging interest rate benchmarks and a global probe is under way into possible similar manipulation of currency benchmarks.

French bank BNP Paribas, which is part of this year’s so-called “stress test” of EU banks, could also be facing a fine of up to $10bn in the US for possible breach of rules.