According to the report by euro zone sources one in six European banks would fail in the EU -wide financial health check. The euro zone even spoke about the stress testing as many officials had checked out the backstops of the EU banks. The result then in future will be pursued by the European Central Bank(ECB) to the investors and then clean up the bank problems. The main aim is to put effort and states which are reluctant and then with the help of money lenders raise money. According to the sources further European Banking Authority about 91 banks will be scrutinised as they have failed many tests.
The tests will even bring out the exact picture of the health in the region bank in the previous years and various sector. A clean bill was provided by the Ireland banks regarding with the health just before their difficulties had driven the country for bailout. The new sudden checks will even check light ON the core capital and absorb the losses of the unpaid loans. Then how well the handle regarding to the unpaid loans and how the economic dip and the property prices has affected the bank.
The authority will even check out till what the bank has been affected due to various reasons and how banks should bond n the lose value. But in spite of all these the tests will end suddenly end and the whole assessing impact will be turned into inter-bank lending. In the long drive the the vast scene of inflation and other factors have a economic scenario which needs to be changed as more banks fail the stress tests.