Only 7 (One German, One Greek and 5 Spanish Cajas) of the 91 banks that went through the stress test will need to be recapitalized by EUR3bn. The market was more expecting USD40 to USD60bn of new capital needed.

This shows that tests where not stringent enough. but also, given every analyst knew the criteria for the test, it may be a sign that banks health may not be so bad.

Source: Exane.

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