Stress tests being conducted in the European Union will show that all the major European banks have sufficiently capital, International Monetary Fund chief Dominique Strauss-Kahn told a French television station.

"I get the feeling that what will come out will be rather reassuring, and that we'll see that all the big European banks are sufficiently solid to resist any earthquake," he told France 24 television in an interview to be broadcast today.

He said it was possible that some smaller banks would have to be recapitalised.