Analysts cast doubt today on the credibility of the stress tests applied to European banks.

THE share prices of the two leading Irish banks remained flat yesterday, despite both meeting expectations and comfortably passing the EU’s much anticipated financial ‘stress tests’.

EUROPE’S banks got a clean bill of health from stress tests that assumed a severe double-dip recession and a rise in interest rates over the next two years.

Stress tests of 91 banks across Europe to gauge their ability to weather a new financial storm have revealed seven failures, regulators said today.

Bank of Ireland and AIB are expected to pass European stress tests today, as part of a check-up on 91 banks across the EU.

The British banking sector faces a moment of truth today when European regulators reveal the keenly-awaited results of stress tests for 91 banks, including Britain’s big four players.

ONE German, two Portuguese and a number of Spanish banks are expected to fail the EU’s stress test, with Allied Irish Bank being given a conditional pass according to official hints.

EUROPE’S banks have been asked to estimate how much additional capital they would need under two adverse scenarios as part of stress tests aimed at reviving confidence among investors.