The picture bellow shows the results of the failed European banks – those with stressed tier 1 capital ratio of less than 6 percent – Citi worked out, given more stringent scenarios and the debt portfolios that were revealed from the European stress tests last week. There is a clear difference between Europe’s results – 6 failed banks out of 91 – and Citi’s results – 24 failed banks out of 91. This is attributed to the more stringent scenarios tested by Citi. Note, how much damaged the Greek banking sector is as 5 of the 6 Greek banks that took part in the tests failed, and the last four positions in the list are occupied by Greek banks. For the details of the exercise run by Citi, click here.
