European banks that fall short of hurdles set in pan-EU stress tests may get up to six months to repair their finances or face further action, one of the region's top regulators said on Monday, according to Reuters. "We could see a window of say, six months, within which we expected remedial action to be taken," said Andrea Enria, adding that he hoped publishing the results of the financial health checks would put banks under pressure to respond. Enria said the European Banking Authority he heads was now examining data from banks outlining how they would cope if exposed to scenarios such as an economic slump or losses on government bonds they own. The stress tests, which promise to lay bare the health of Europe's banks and prompt governments and others to prepare assistance for laggards, are a critical plank of European Union efforts to win back the confidence of financial markets. Analysts believe some countries including the continent's economic powerhouse Germany have dragged their heels in tackling banking problems. Enria's deadline could prompt faster action. The results of the latest series of checks will be announced in the coming weeks and Enria said he hoped troubled lenders would have taken steps to address weaknesses on their balance sheets at the latest by the end of this year. -- SPA
