EU unveils tougher bank tests

LONDON, Apr 29 (Reuters): European banks must show they can survive simultaneous routs in bonds, property and stocks, in the toughest test so far by regulators aiming to restore confidence in an industry that had to be rescued by taxpayers in the financial crisis.

The European Banking Authority (EBA) said on Tuesday it would gauge the resilience of 124 banks from the 28-country European Union to see if they would still have enough capital after facing a toxic cocktail of theoretical shocks.

The EU watchdog set out the scenarios which banks such as Deutsche Bank, BNP Paribas and Barclays could face, in tests whose results will be published in October, raising hopes among some policymakers that banks can finally turn a corner and lend more to the economy.

The benchmark STOXX Europe 600 banks index was up 1.5 per cent at 1028 GMT, with almost all its members gaining ground. The biggest risers were Commerzbank, Nordea - which posted results - and SocGen.