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.

Which countries' banks were found not lacking in the ECB stress test?

What was the main purpose of the ECB's stress test exercise according to the report?