Markit Recap – 7/25/2016

Back in July 2010, not long after the first Greek bailout, results of stress tests conducted by the Committee of European Banking Supervisors (the predecessor of the EBA) were released on the EU’s banks. They didn’t make for happy reading. Seven institutions failed, and they were required to raise additional capital to reach the 6% tier one ratio under the test’s adverse scenario. Five of the failures were Spanish, along with one German and one Greek bank.