ECB says 25 banks fail health check of the sector. Banks with a capital shortfall will have to say within two weeks how they intend to close the gap

The 25 euro zone lenders that failed the European Central Bank's landmark health check of the banking sector had a capital shortfall of €25 billion at the end of last year, the ECB said. 

12 of the 25 banks that failed the exercise, which was based on the banks' financial positions at the end of 2013, have since covered their capital shortfalls by increasing their capital by €15 billion in 2014

Italy's financial sector faces the biggest challenge with nine of its banks failing the test, according to watchdog the European Banking Authority, which coordinated the fourth EU stress test with the ECB.


Monte dei Paschi had the biggest capital hole to fill at €2.1 billion, even after its money raising efforts so far this year. 
The EBA said three Greek banks, three Cypriots, two from both Belgium and Slovenia, and one each from France, Germany, Austria, Ireland and Portugal had also fallen short as of the end of last year. 
The ECB has spent the last year reviewing the leading banks' assets and subjecting them to rigorous stress tests - an exercise aimed at flushing out any problems before it begins supervising the sector from November 4. 

The ECB's pass mark was for banks to have high-quality capital of at least 8% of their risk-weighted assets in the most likely economic situation for the next three years, and capital of at least 5.5% under a bleaker scenario. 

Banks with a capital shortfall will have to say within two weeks how they intend to close the gap. They will then be given up to nine months to do so..........................http://www.rte.ie/news/business/2014/1026/654972-ecb-tests/
26/10/14
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Related:

• 25 eurozone banks fail ECB stress test. -Sind sogar 25 Banken im EZB-Test durchgefallen? (Reports)

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