ECB Fails 25 Banks as Italy Fares Worst in Stress Test
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Twenty-five lenders including Banca Monte dei Paschi di Siena SpA failed a stress test led by the European Central Bank, which found the biggest capital hole in the region’s banking system in Italy.
The Frankfurt-based institution identified a total gap of 25 billion euros ($32 billion) as of the end of 2013, most of which has now been raised by banks. Among lenders still in need of funds, Italy’s Monte Paschi and Banca Carige SpA must find a combined 2.9 billion euros between them, the ECB said today.