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Seven European banks fail stress tests
BRUSSELS, Only seven of 91 European banks failed stress tests on their financial stability in the event of a sharp economic downturn, regulators said Friday.
Five banks in Spain, one in Germany and one in Greece came up short when European Union regulators found they needed modest amounts of new capital, The Wall Street Journal reported. The stress tests were similar to those conducted to restore confidence in U.S. banks last year.
The EU's Committee of European Banking Supervisors examined balance sheets to determine what banks in the 16 nations that use the euro as currency -- as well as Britain, Denmark, Hungary, Poland and Sweden -- were strong enough to survive a financial crisis, the EUobserver said.
Spain, hit by a dramatic downturn in real estate, included 27 of the 91 banks that were looked at in the process and was expected to have the largest number of bank failures of regional lenders, called cajas, that are exposed to the property market losses.
The EU regulators found the Spain's Banca Civica and four savings banks, the government-owned Hypo Real Estate of Munich, Germany and ATEBank of Greece had a combined shortfall of $4.5 billion, the Journal said.
The stress tests indicated the 91 banks scrutinized could face losses of $729.35 billion in an economic collapse.
BRUSSELS, Only seven of 91 European banks failed stress tests on their financial stability in the event of a sharp economic downturn, regulators said Friday.
Five banks in Spain, one in Germany and one in Greece came up short when European Union regulators found they needed modest amounts of new capital, The Wall Street Journal reported. The stress tests were similar to those conducted to restore confidence in U.S. banks last year.
The EU's Committee of European Banking Supervisors examined balance sheets to determine what banks in the 16 nations that use the euro as currency -- as well as Britain, Denmark, Hungary, Poland and Sweden -- were strong enough to survive a financial crisis, the EUobserver said.
Spain, hit by a dramatic downturn in real estate, included 27 of the 91 banks that were looked at in the process and was expected to have the largest number of bank failures of regional lenders, called cajas, that are exposed to the property market losses.
The EU regulators found the Spain's Banca Civica and four savings banks, the government-owned Hypo Real Estate of Munich, Germany and ATEBank of Greece had a combined shortfall of $4.5 billion, the Journal said.
The stress tests indicated the 91 banks scrutinized could face losses of $729.35 billion in an economic collapse.
