Where Banks Failed The Stress Tests

Two Greek banks, five Spanish banks, and one Austrian bank have failed the EU bank stress tests.

Another 16 banks, from Cyprus (one), Germany (two), Spain (seven), Greece (two), Italy (one), Portugal (two) and Slovenia had a capital ratio of under 6%, putting them close to the threshold for passing the test.


banks stress test capital ratio 2011


Banks that failed the test will have six months to raise funding in order to satisfy the capital ratio, this time based on Tier 1 capital, before the European Banking Authority expect national governments to pick up the slack and provide funding or restructure the banks.

The EBA says that the other 16 banks that squeaked by the requirements should “take specific steps to strengthen their capital position…includ[ing], where neces

sary, restrictions on dividends, deleveraging, issuance of fresh capital or conversion of lower-qualityinstruments into Core Tier 1 capital.”

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