The tests aim to assess whether financial institutions have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over a period of nine quarters
Larger banks wouldn't have to incorporate the supplementary leverage ratio into their capital plans and stress testing until the 2017 cycle
Efforts aimed at restoring investor confidence in Europe’s banking systems will take time
Review will boost public confidence in the banking sector, official says
The European Central Bank is due to report the results of its assessments of the EU’s largest banks on Oct. 26
Tests will look at three different scenarios
Barclays, HSBC, Lloyds and RBS will all participate in the tests
Scenarios include baseline, adverse, and severely adverse
Review is designed to ensure that U.S. banks are adequately capitalized to weather a worsening economic storm