London, England – On the conducted “stress test” on 91 European banks 7 of them ultimately failed.
The test conducted to assess these banks’ capabilities to recover from any economic crisis.
According to the Committee of European Banking Supervisors (CEBS), the said banks who failed the stress test conducted by the CEBS are composed of five banks from Spain; Espiga, Diada, Banca, Civica and Unnim while two other banks are Hypo Real Estate of Germany and the ATEbank of Greece.
The five banks from Spain who failed the stress test are regional saving banks that lost their revenues after the property market of Spain went low.
CEBS chairman Giovanni Carosio stated that they (banks who failed the stress test) need to create an immediate action plan on how to address the problem.
He also added that these banks need a new capital that is estimated to 3.5 billion euros for them to reach the said standard.
The stress test was made to let investors know the stability of the financial sector of Europe.
The said stress test conducted also includes four big banks in the United Kingdom and which all of the four banks passed the test.
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