The IMF is set to stress test German and British bank as the European Banking Authority (EBA) rolls out is own set of test fro other European banks. The EBA plans a tougher test of Europe’s banks than it applied last year. It came in for heavy criticism for finding minimal capital shortfalls just prior to Irish banks requiring a assistance package.

The tests, which are due to commence at the end of February with results to be published in June, are seen as timely. A study has found that over 30 of the top banks in the world do not possess sufficient capital to withstand a shock.

The IMF’ will test several of the top name banks in the UK to include HSBC and Barclays. The tests are to be conducted in the first quarter of this year and are expected to take several weeks to complete.