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Stress Tests Toughened as 90 Banks to Face EU Capital Exams

European regulators will use a tougher measure of capital on 90 lenders in this year’s stress tests following criticism last year’s weren’t stringent enough.

Banks will be expected to maintain a Core Tier 1 capital ratio of at least 5 percent under the stress-test scenarios, the European Banking Authority said on its website. Lenders won’t be allowed to use some types of non-voting capital permitted by German bank supervisors, known as silent participations, to calculate the results, the EBA said.