The number of European banks subjected to stress tests is likely to rise significantly, with sources suggesting that as many as 100 institutions will be involved in a broader exercise to shore up market confidence.
European Union leaders have already agreed to publish stress test results for 26 banks next month – mainly big, cross- border institutions – to address concerns about the eurozone's exposure to sovereign debt.
But one German government official said those tests, which are being conducted by the Committee of European Banking Supervisors (CEBS), would be expanded to cover “significant market share” in each market – around half of all bank balance sheets in each country.