Will EU bank stress test be enough to calm fears?

BERLIN (AP) -- How much stress can Europe's banking system take?

That question has put markets on edge amid the continent's government debt crisis, and European Union leaders hope to make a big step toward restoring confidence with the publication later this month of "stress tests" on 91 banks representing the bulk -- 65 percent -- of the European banking system.

But skepticism persists about whether the tests will be tough enough to offer credible reassurance to financial markets worried that banks may be hiding losses on government bonds or other debt from financially troubled countries such as Greece, Portugal and Spain.

Doubts remain whether the announcement of the results July 23 will be the magic bullet that stems months of anxiety -- or another missed communication opportunity by EU leaders, whose delays in agreeing on a $1 trillion backstop for troubled countries on the union's periphery worsened the crisis and helped bring Greece to the brink of bankruptcy.