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Some of biggest European banks performed poorly on stress test

Staff Writer |
Banks from Italy, Ireland, Spain and Austria fared worst in the latest European Union stress test.

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The region's banking watchdog said the test showed there was still work to do in order to boost credit to the bloc's economy.

Italy's Monte dei Paschi, Austria's Raiffeisen, Spain's Banco Popular and two of Ireland's main banks came out with the worst results in the EBA's test of 51 European Union (EU) lenders.

Italy's largest lender, UniCredit, was also among those banks which fared badly, and it said it will work with supervisors to see if it should take further measures.

Germany's biggest banks, Deutsche Bank and Commerzbank, were also among the 12 weakest banks in the test, along with British rival Barclays.

Monte dei Paschi, Italy's third largest lender, had been scrambling to pull together a rescue plan and win approval for it from the European Central Bank ahead of the test results.

The Italian bank confirmed less than an hour before the results that it had finalised a plan to sell off its entire portfolio of non-performing loans and had assembled a consortium of banks to back a 5 billion euro capital increase.

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