Germany’s Merkel says conditions in key bank review will be “very realistic”

Germany’s Merkel: stress tests credible

BERLIN — German Chancellor Angela Merkel is seeking to counter skepticism on Europe’s bank stress tests ahead of their publication, saying they are realistic.

The results of tests on 91 banks across the continent are to be published on Friday. The exercise is meant to lift the cloud of uncertainty surrounding the exposure of European banks to the debt crisis but some analysts have questioned whether the tests will be tough enough.

Merkel noted Wednesday that the tests come after European leaders agreed on a rescue package for debt-laden Greece and on another one of nearly $1 trillion for the eurozone as a whole.

She said at a news conference: “I think that, measured by the real situation, the conditions for these stress tests are very realistic.”