Stress Test, Regulators | featured news

U.S. bank regulators are set to vote on a plan requiring banks with more than $10 billion in assets to conduct annual stress tests to determine if they can withstand a financial shock.

Eight of 90 banks have flunked stress tests that project how they would fare in another recession, and 16 more barely passed, Europe’s banking regulator said Friday. The failing banks should “promptly” take steps to strengthen their financial cushions against losses, the European Banking Authority said as it released the results. The banks that barely passed may also face pressure to strengthen their finances along with the ones that failed.