ECB stress tests criticised by German banker

A top German banker has accused the ECB of acting arbitrarily and inconsistently with tests designed to check the stability of the eurozone’s biggest banks, saying they seemed designed to disadvantage the strongest institutions.

The head of Germany’s powerful Sparkassen savings banks association, Georg Fahrenschon, said economic assumptions built into the ECB’s stress tests varied widely between countries and could lead to the wrong results.

“These assumptions are not transparent and seem somewhat arbitrary to say the least,” Mr Fahrenschon said. “The tests seem most concerned with the healthy banks under the motto of, whoever is healthiest can get the most sick.”