EU banking stress tests

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Spanish banks pass most stringent stress tests to date with no capital shortfalls

MADRID | The Corner | The ECB did not find any capital shortfall in the Spanish banks, which all passed the highly awaited central bank’s stress tests. Results made public on Sunday reveal that 25 European lenders failed while the other 105 succeeded. Among the big fish only the Italian Monte dei Paschi, the world’s oldest, appears in the failure list. Those 25 European entities will have to face €24.6 billion capital shortfall, but considering 13 of them have already issued part ot these capital needs, they will only reach €9 billion.

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Market Pledges for Spanish Banks Passing Stress Tests

MADRID | By Francisco López | If the efficient markets hypothesis is true, it’s almost sure that Spanish banks will pass next year stress tests. The stock market is clearly betting on the strength of the country’s banking sector, as the rise in its market capitalization by 40 billion euro in just four months shows. Also, its price rose an average of 40% in 2013 and most of them are trading above their book value.