SOURCE: The Bedford Report

The Bedford Report

March 08, 2011 08:46 ET

European Banks Brace for Increased Scrutiny

The Bedford Report Provides Analyst Research on The Bank of Ireland & National Bank of Greece

NEW YORK, NY--(Marketwire - March 8, 2011) -  After failing to uncover much of the extent of financial turmoil for banks in Ireland, European banking regulators are attempting to toughen stress tests on foreign lenders this year. Last year's stress tests proved a massive failure: all but seven of 91 banks that underwent stress tests passed a 6 percent tier one capital threshold, a measure of financial strength -- this included two Irish banks that had to be bailed out four months later. The Bedford Report examines the outlook for Foreign Banks and provides research reports on The Governor and Company of the Bank of Ireland (NYSE: IRE) & National Bank of Greece SA (NYSE: NBG). Access to the full company reports can be found at:

In 2010 the stressed scenario assumed retail bank profits would drop less than 6 percent before provisioning for losses, compared with the assumption in US stress tests that investment bank profits would drop by as much as 16 percent.

According to a report from The Financial Times, The European Banking Authority will introduce a "near-fail" category into the stress-test process as part of a more robust mechanism for compelling weaker banks to recapitalize. Besides the seven banks that failed last year's tests, there were a further 17 that came within 1 percentage point of failing. In this year's version of stress tests, those could receive a possible definition of near-fail.

The Bedford Report releases regular market updates on International Markets so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

Recently Irish authorities suspended plans to force the country's troubled banks to sell off huge portfolios of loans, meaning that the nation's largest banks will depend on emergency funding from the European Central Bank for longer than hoped. The Irish government has already poured 46 billion Euros -- about 30 percent of gross domestic product -- into its broken banks

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

Contact Information