Stress tests are a phenomenon that should raise questions directly: a banking regulator that conducts a publicly accessible stress test on bank´s financial statements. What incentive does a regulator have to see half of the banks it regulates fail? This façade has one objective: to increase trust in the banking sector. Unfortunately, the latest stress test last month turned out to be one miserable failure. “Only” three banks failed to pass the EU stress test: Banca Monte dei Paschi, Royal Bank of Scotland and Allied Irish Banks. But financial markets were not very convinced: some bank shares tanked and reached new lows. A mere week later, however, most share prices recovered. But thanks to the German Zentrum für Europäische Wirtschaftsforschung (ZEW) we have learned something of even greater importane. What am I talking about?

The (Ground-breaking) Research of ZEW

Source: EBA Risk Dashboard

Do You Still Have Money at the Bank?


Sign up for our periodical newsletter to stay informed about the gold and silver markets and special offers.


GoldRepublic operates under license from the Dutch Authority for the Financial Markets (AFM),
Registration Number 12020650