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Global economic crash WARNING: France urges stress tests fearing worst

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GLOBAL economic uncertainty has forced France’s central bank chief to demand stress tests for the country’s lenders to see whether they could cope with another financial crisis in the Eurozone.

Regulators fear the world could plunge into chaos if a new crisis – be it war, protectionism, or an economic downturn – shocks the financial system and causes liquidity to dry up.

They want to ensure there is enough money in the bank to withstand the financial trauma of a worst-case-scenario banking crisis in the Eurozone.

Bank of France governor Francois Villeroy de Galhau told a conference at the French central bank: “To measure the global impact of shocks, we need in particular to have macro stress tests of liquidity, including for investment funds.

“These actors are potentially vulnerable to runs in case of a market shock if they are open and don’t have a way of capping buybacks.”

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