Biggest risk for 2014? Bank stress tests

Stress Test

European bank stress tests are one of the world's biggest risks going into 2014, Huw van Steenis, head of European financial services research at Morgan Stanley, has told CNBC.

Banks and Fed's Stress Test Models Far Apart

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The Federal Reserve's most recent stress test shows all but one of the nation's 18 largest banks are prepared to handle a severe economic shock. That is an improvement from last year when two banks failed to meet the minimum requirements outlined by the central bank.