Irish banks will have to prove they can withstand another slump in property prices, a surge in unemployment, and sclerotic growth over a three-year period as part of the EU-wide stress tests later this year.

THE European Banking Authority (EBA) has warned lenders against being so risk-averse as to prompt a credit crunch.

EUROPE’S finance chiefs will try again next week to end a deadlock over bank funding, after the industry regulator warned time is running out to revive confidence across the eurozone.

ALL three Irish banks have passed the annual health check on whether they could survive further economic shocks.

EIGHT of 90 banks have failed a stress test when they had a combined shortfall of €2.5 billion to survive another economic setback.