Stress Tests : Spain Home to Strongest Banks

 

The stress tests results of the Eurozone's 90 Banks published on Friday revealed not only how 5 of the 8 failures were from Spain, but also that the country also was home to some of the Eurozone's strongest performers.

The European Banking Authority (EBA), found an average capital shortfall of only €2.5bn at 8 banks, which immediately attracted criticism that the tests were not far reaching enough, partly because they did not consider any sovereign debt.

All Banking institutions were subject to the same rigorous tests, regardless of their size and ranked in order of their perceived strength.

In Particular Santander and BBVA, the two largest Banks in Spain, passed all aspects of the tests with flying colours, which should add some confidence to the markets.