‘No financial nationalism’ in bank stress tests

There will be no “financial nationalism” in the coming bank stress tests to be carried out ahead of the ECB taking over as the single banking supervisor, economics commissioner Olli Rehn has warned.

He also insisted that the ECB was ready to change interest rates or inject more liquidity into the system if the anaemic eurozone economy was to move into deflation.

Asked about the need to recapitalise banks, Mr Rehn said it was of paramount importance that their financial repair is finalised.