Stress test

 Efe had reported that three Greek banks have failed health checks

The European Central Bank cautioned on Wednesday against speculation over the outcome of its stress tests after a media report said at least 11 banks had failed the landmark financial health checks, driving some banking shares lower.

By Yiannis Papadoyiannis

The clock is ticking ahead of the release of the European banks’ stress test results, and executives at local lenders are displaying reserved optimism regarding the outcome of the exercise.

Domestic bank officials say that the high readings of their capital adequacy ratios create a safety cushion that could absorb the impact of the adverse scenario.

Top National Bank of Greece officials expressed optimism on Friday that the country will emerge from the financial crisis and certainty that Greek banks will grow stronger following the European stress tests.

 Sector's denial of any capital injection needs receives backing from positive report delivered by JPMorgan

Greek banking sources are denying reports that the sector will need a new round of increased capital support, announcing that no such news has been delivered to them by the European Central Bank.

By George Georgiopoulos

Greek bank shares fell sharply on Wednesday, leading the broader Greek equities market lower, with traders citing jitters over the European Central Bank's region-wide stress test and weakness in other European markets.

European Union banks will be ranked on how well they can withstand a 21.2 percent slump in home values, coupled with a surge in unemployment and plummeting economic growth, as part of the bleakest scenario in the most severe EU stress test to date.