Monte dei Paschi, Raiffeisen, Banco Popular flagged in EU bank stress tests

Monte dei Paschi, Raiffeisen, Banco Popular and two of Ireland's main banks came out worst in a European Union stress test aimed at cleaning up balance sheets to boost the flow of credit to the bloc's economy.

Deutsche Bank scored higher in the stress test this year than in 2014 in a sign that steps to bolster financial resilience are taking hold. The company's common equity Tier 1 ratio fell to 7.8 per cent in the adverse scenario from 11.1 per cent at the end of 2015, the EBA said. Two years ago, the ratio - which measures equity as a share of assets weighted by risk - fell to 7 per cent from a starting point of 9.2 per cent.

Reuters