1. ECB: 25 banks fail test

  • 25 European banks have failed stress tests carried out by the European Central Bank; gross capital shortfall of €25bn. 
  • ECB said 13 banks needed more capital; 12 had already raised enough funds to meet shortfall identified in initial audit (Bloomberg).
  • 'Overlapping test' by EBA found 24 banks failed stress test; 14 yet to take remedies to alleviate concerns (BBC)
  • Italian banks worst hit, Monte dei Paschi has the biggest capital shortfall: €2.1bn; Spanish firm Liberbank failed ECB asset quality test but passed EBA test (BBC).