Oct 27 Bulgaria 1 Report from London Nejra Cehic

The ECB stress test revealed Italian banks as the worst performers, though many banks have addressed their capital shortfalls. The ECB assessed banks' balance sheets from 2013, requiring high-quality capital to be at least 8% of risk-weighted assets. Thirteen banks showed capital gaps, with eight still needing to raise capital, including four Italian banks. Monterde Passkey DCNR, the world's oldest bank, has the largest gap. The ECB emphasized transparency over the number of failing banks, aiming to provide insights into lenders' books. This exercise is crucial as the ECB prepares to become the eurozone's financial supervisor.

What was the minimum capital requirement for banks to pass the ECB's Asset Quality Review?

• 5% of total assets

• 10% of risk-weighted assets

• 8% of total assets

• 5.5% of risk-weighted assets

How many banks were identified with capital gaps in the ECB's report?

• 5 banks

• 13 banks

• 8 banks

• 10 banks

Which bank was noted to have the largest capital gap?

• Monte dei Paschi di Siena

• Deutsche Bank

• BNP Paribas

• Santander

What was the primary focus of the ECB's stress test exercise?

• Ensuring transparency

• Increasing bank profits

• Identifying banks to close

• Reducing bank staff

Which countries' largest banks were not required to raise more capital?

• Netherlands, Belgium, and Austria

• Ireland, Finland, and Denmark

• Italy, Greece, and Portugal

• Germany, France, and Spain