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The business of testing credibility

Banking is all about confidence, and for too long, there has been too little in Europe’s banks. The third round of stress tests from the European Banking Authority, and a stringent review of asset quality from the European Central Bank (together in eurozone jargon, the Comprehensive Assessment) are supposed to restore confidence in the institutions that pass the exam. But markets remain worried about what will be found. Owen Sanderson reports.

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