The stress tests that European banks will undergo this year will have to be more credible, like the ones in the United States, and may be completed in the first half of the year, France's Economy Minister Christine Lagarde told CNBC Monday.
Last year in July, 91 banks in the European Union went through stress tests but only seven of them failed, prompting many critics to say the tests were not tough enough.
"The next European stress tests have to be more credible. They have to be better communicated and that is also part of the picture because if we have to restore confidence and build our stability, we need to safe and secure with our banking system and with our banks," Lagarde said in an interview.
"So we have to go through testing just like in the United States for instance, as will happen in the course of 2011," she added.
Last year, five Spanish savings banks – or cajas – failed the stress test. Spain has taken measures to prop up the cajas but some analysts say that they are likely to need up to 50 billion euros ($67.5 billion) to boost their capital.
"The Spanish banks, like the French banks, like the German banks, like the Swedish banks will be…put to test," Lagarde said.
"And will be stress tested in due course. And just like for any other bank in the European Union. If capitalization or recapitalization is required, then we will have to see to that," she added.
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