One in five major European banks fail ECB's first stress test
- 10 years ago
Twenty-five major European banks could have failed in 2013 had there been a new financial crisis, but today half of them are out of danger.
So says the ECB, publishing its first-ever bank stress test results, bit it insists 2014 has seen improvements.
“The resilience revealed by the vast majority of the banks, in spite of the severity of the exercise, guarantees that the economic recovery will not be hampered by credit supply restrictions coming from the banking sector”, said ECB Vice-President Vitor Constâncio.
Nearly one in five of Europe’s 130 biggest banks failed the 2013 stress test, including the world’s oldest Monte Paschi di Siena, one of nine Italian banks concerned. Cyprus and Greece had three each.
In total the Tremoring 25 had a collective capital shortfall of 25 billion euros. In Britain Lloyds came very close to failing the tests, but of the 25, 12 have since raised 15 billion of new capital.
So says the ECB, publishing its first-ever bank stress test results, bit it insists 2014 has seen improvements.
“The resilience revealed by the vast majority of the banks, in spite of the severity of the exercise, guarantees that the economic recovery will not be hampered by credit supply restrictions coming from the banking sector”, said ECB Vice-President Vitor Constâncio.
Nearly one in five of Europe’s 130 biggest banks failed the 2013 stress test, including the world’s oldest Monte Paschi di Siena, one of nine Italian banks concerned. Cyprus and Greece had three each.
In total the Tremoring 25 had a collective capital shortfall of 25 billion euros. In Britain Lloyds came very close to failing the tests, but of the 25, 12 have since raised 15 billion of new capital.