Twenty-four European banks fail EBA stress test


Twenty-four European banks have failed stress tests of their finances, the European Banking Authority (EBA) has announced.

The banks now have nine months to shore up their finances or risk being shut down. No UK banks are included.

The review was based on the banks’ financial health at the end of 2013.

Ten of them have taken measures to bolster their balance sheets in the meantime. All the remaining 14 banks are in the eurozone.

The health check was carried out on 123 EU banks by the EBA to determine whether they could withstand another financial crisis.

The list of 14 includes four Italian banks, two Greek banks, two Belgian banks and two Slovenian banks.

The worst affected was Italian bank Monte dei Paschi, which had a capital shortfall of €2.1bn (£1.65bn, $2.6bn).

BBC World Service economic correspondent Andrew Walker says concerns about banks were a central element in the eurozone financial crisis and in some countries, their weakness remains a factor holding back economic growth.

Four UK banks were subjected to the EBA test: Royal Bank of Scotland, HSBC, Lloyds Banking Group and Barclays.

None of them failed the test, but Lloyds passed narrowly, with capital under adverse scenarios of 6.2%, not far from the 5.5% benchmark.

“We welcome the EBA’s confirmation that Lloyds Banking Group meets all the capital benchmarks set out for the purpose of the stress test, and that the group is not required to take any action as a result of the test,” a Lloyds spokesperson said.

“This strong position reflects the steps taken by the group’s management over the last three years to return its balance sheet to a robust position, and we will continue to use this strong basis to help Britain prosper.”

Still troubled: The 14 banks that still need to raise capital

Austria: Oesterreichische Volksbanken

Belgium: AXA Bank Europe, Dexia

Cyprus: Hellenic Bank Public Company

Greece: Eurobank Ergasias, National Bank of Greece

Republic of Ireland: Permanent TSB

Italy: Banca Carige, Monte dei Paschi, Banca Popolare di Milano, Banca Popolare di Vicenza

Portugal: Banco Comercial Portugues

Slovenia: Nova Kreditna Banka Maribor, Nova Ljubljanska Banka


we were watching monte dei paschi a year 24 failed but how many others scraped through because they had time to fudge the books sufficiently to hide the “stress”?

“The banks now have nine months to shore up their finances or risk being shut down.”

sure they will.. *rolls eyes


~ by seeker401 on October 28, 2014.

One Response to “Twenty-four European banks fail EBA stress test”

  1. Only the banks the NWO want rid of will fail the test. Eventually there will be only one bank – the one world bank – with the illuminati in control.

    “They” give the “fairly” independent banks enough rope to hang themselves then they suddenly withdraw credit and come down hard.

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