The second round of stress tests on the European bank were more rigorous than the first, but the latest tests are still seriously lacking. Even though they came smack in the middle of a difficult European debt crisis that the markets worked like a sore tooth, the tests didn´t consider market valuation of Spanish sovereign debt.
Perhaps because that would have cast a much poorer light on the results of French and German banks, which would show that the EBA is too heavily influenced by those countries.
On the other hand, they are not anticipating a run on the banks where customers all try to withdraw their money at once, something that could happen if there were too many defaults at once.
They are not making inquiries about the stability of these funds, yet a series of massive withdrawals would destroy the cash levels for banks. That would be an unstable situation.
