ECB says 13 banks need funds to survive [IMG]AAP – 14 hours ago...

ECB says 13 banks need funds to survive

AAP – 14 hours ago

Twenty-five eurozone banks have failed a stress test intended to determine their financial stability, the European Central Bank (ECB) says, adding that 13 of those must raise 10 billion euros ($A15.00 billion) in the next six to nine months.
The other 12 banks have already raised 15 billion euros in capital to adjust their balance sheets in 2014.
The tests on 130 banks were based on balance sheets as of December 2013.
Nine Italian banks failed the stress tests, according to the ECB.
One German institution, Munich Hypotheken eG, was among the 25 failing financial institutions.
Three Greek banks, 3 Cypriot banks, 2 Slovenian banks, 2 Belgian banks, one Irish bank, one Austrian bank, one Portuguese bank, one French bank and one Spanish bank also failed, based on their December 2013 balance sheets.
Asset values across all banks were adjusted by 48 billion euros, the ECB said, and bad loans increased by 136 billion to 879 billion euros.
"This unprecedented in-depth review of the largest banks' positions will boost public confidence in the banking sector," ECB Vice President Vitor Constancio said in a statement.
"By identifying problems and risks, it will help repair balance sheets and make the banks more resilient and robust."
The 13 failing banks will also have to submit a re-capitalisation plan to the ECB within two weeks.
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