Tougher European bank tests revealed

European banks will be expected to prove they can survive a 7% drop in GDP under new tougher stress tests unveiled by the regulator. It says banks should also be able to withstand a 14% fall in house prices and up to a 19% drop in share prices under a worst-case scenario. The tests are designed to try and prevent further taxpayer bailouts. The regulator said the tests would "address remaining vulnerabilities in the EU banking sector". "It will provide a common framework for the next stops to be taken by supervisors and banks," said European Banking Authority (EBA) chair Andrea Enria, according to BBC.