Thirteen European banks failed finance sustainability test

Thirteen out of 130 biggest European banks did not pass the test in the overall estimation of their finance and they need EUR 10 billion to secure from losses, the European central bank announced on Sunday, October 26, 2104.

The European central bank added that 25 banks need stronger security from loss, while 12 is already in deficit.

The remaining 13 banks will have two weeks to inform ECB how they will check their cash security.

ECB tested the value of banking property and conducted stress tests on banks which simulate what would happen with their finance in the case of economic breakdown.

The sense of the test is to strengthen banking systems so that they can provide more loans for companies and strengthen fragile European economy.