The European market is worried about is self-confidence

Obviously, the Greek economy is in dire straits, but also the country's financial system is under unprecedented pressure. However, we must face the five-week stress test results of the Greek banking sector banks did not seem to feel pins and needles.

Not only to Greece, the European confused. Regulatory authorities are preparing to announce 91 major banks in Europe stress test results, the EU finance ministers have become politicians and high-profile positive surprise.

Could not stand the International Monetary Fund (IMF) last week, says that Europe must stress test its banks more transparent, and extended to more institutions to improve the reliability of these tests.

European officials were optimistic about high-profile concerns

In recent weeks, pressure test results on optimism constantly filled the air, attempting to comfort investors - the European financial system safe. This European bank shares continued to rise, the euro and the pound soared against the dollar advantage of the opportunity.

Test results is scheduled for July 23 release, the subject banks 91 largest bank in Europe, including Greece 6, specific for the four private banks - National Bank of Greece (National Bank of Greece), EFG Eurobank Ergasias SA, Alpha banks (Alpha Bank SA), Piraeus Bank (Piraeus Bank SA) and two state-controlled bank, the Post Bank of Greece (Hellenic Postbank), ATE Bank.

Greek officials have repeatedly said in various occasions, they stress test in the Greek banking sector's performance in "very confident." Stephanopoulos at the Greek central bank governor Provo last Saturday to accept a Greek media said: "I think this six Greek banks will successfully pass the test." Efforts of the Greek Finance Minister 帕帕康斯坦 quarter of Greece is also on July 19 seminar was held by euro bank said, "sure" the Bank of Greece will be passed stress tests conducted by EU experts.

As the debt crisis of the current round of European origin, the Greek banks have been suffering from high and troubled loan default rates. Now consumers are a constant drain on deposits, risk-averse investors are also reluctant to buy the debt of Greece, what are the reasons for optimism?

Not only is Greece, IMF president, Kahn is also a television interview last Friday, said the major European banks in the safe in the stress test. Including France, Germany and other European officials have also expressed similar views on different occasions.

European "very confident", analysts and investors have "worried" because including six Greek banks, including some European banks should be most in need of injection. European officials not only failed to appease the optimistic statements has long scarred the market, but sparked the process of stress testing the credibility of this concern.

"If the Bank of Greece passed the test, then the market will wonder whether these tests, close, or whether they really accepted the test." Royal Bank of Scotland (RBS), an economist said.

Test reliability was challenged

In view of lack of transparency in the process of stress tests, such concerns are not groundless.

Stress test coverage of these large banks test at least each of the participating countries account for more than 50% of total bank assets, including the 16 euro-zone member countries and the United Kingdom, Denmark, Poland and Sweden.

The tests by the 20 financial regulators jointly conducted by the London-based European Banking Regulatory Commission (CEBS) is responsible for coordination. In order to test these methods in the EU member states to reach agreement, CEBS with a great deal of enthusiasm. However, the variables used for testing but said little, but at present it is unclear Friday the test results to be announced how much substance. IMF said on this week, although the market has so far look positively on this process, but "there may still exist on the test stringent degree of uncertainty."

Morgan Stanley analyst Huw van Steenis, chief banking industry in the July 19 release of report that stress tests negative after the announcement of the biggest risk is "prejudicial to the credibility of the factors that the test": including the total amount of bank financing is obviously too low, the quality of attention to capital adequacy, and the German practice. He believes that Germany is likely to decide not to bank additional capital.

Last year, the United States after the test pressure to force 19 of the 10 largest banks in the capital, added that if the five-week, test results released in Europe too moderate, will greatly weaken the European policy-makers from various sectors of confidence.