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NLB Needs to Raise EU600 Million as Stress Test Looms

Nova Ljubljanska Banka d.d., Slovenia’s largest bank, needs to raise 600 million euros ($771 million) in fresh capital as it struggles to pass a stress test of 91 European banks by the European Union this week.

EU regulators, examining the strength of banks to reassure investors about the industry’s resilience to losses following a sovereign-debt crisis, will release results on July 23. Banks would need a Tier 1 capital ratio, a key measure of financial strength, of at least 6 percent. NLB’s Tier 1 is at 7.2 percent, though its financial strength may be weaker than other banks operating in the Balkan region, it said in an email.