Come clean on stress tests, says Osborne

THE Financial Services Authority should come clean about the results of its "stress tests" on UK banks, says shadow chancellor George Osborne.

Writing in today's Financial Times, Osborne argues that admitting the true extent of the banking crisis is a vital step towards restoring confidence.

Last week it emerged that the City watchdog's tests on the state of the banks' balance sheets were less severe than analysts were expecting.

The regulator demanded banks had enough capital to absorb a rise in unemployment to 12% and a fall in commercial property prices of 60%.

But the results for individual banks remain secret.

The European Union also needs to co-ordinate its response to the financial crisis, Osborne argues.

He writes: "In a recent trip to Washington I found widespread concern that the European banking system was not facing up to its problems.

"The Treasury initially turned down a freedom of information request for the results of the Financial Services Authority's stress tests on the grounds that it could 'lead to uncertainty in financial markets' ... if handled sensitively, the reverse is true."