FRANKFURT, Germany (AP) — A clear majority of the 91 EU banks have passed stress tests conducted by regulators — but Germany’s nationalized lender Hypo Real Estate Holding AG failed.
It was the only German bank to fail the European stress test.
Officials said Friday that HRE’s tier 1 capital ratio would fall under 6 percent under two tested scenarios in which the economy goes back into recession and there is a new sovereign debt shock.
The tests are measuring the ability of 91 European banks to withstand an economic downturn in an attempt to reassure markets.
