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Sasko Lazarov/Photocall Ireland
# Fail
Permanent TSB, along with 25 other eurozone banks expected to fail stress test
The results are expected to be out shortly after 11am today.
SOME 25 EUROZONE banks have failed a health check by the European Central Bank, reports have claimed, citing leaked documents.
Nearly one in five of the 130 banks surveyed failed the stress test, the Wall Street Journal and the Daily Telegraph said, ahead of the publication of the official results by the ECBon Sunday.
Reuters reports that Ireland’s Permanent TSB is expected to be one of the 25. They stated the bank had a capital shortfall of €800 million to €850 million at the end of 2013.
The shortfall will drop to around €200 million.
The unprecedented health check of eurozone banks comes before the ECB assumes the role of the region’s banking supervisor next month.
The Frankfurt-based institution takes on its new watchdog role on November 4 and it hopes that a “comprehensive assessment” — made up of a so-called asset quality reviews and a “stress test” — will uncover any potentially nasty surprises beforehand.
Citing a draft memo seen by Bloomberg, the Telegraph report said only 10 of the 25 banks which failed the stress test would be told to raise more cash.
The failing banks were thought to be in Ireland, Italy, Greece and Austria and will have until November 10 to fill in capital shortfalls, the paper reported.
The banks were already given a preliminary indication of their outcome on Thursday.
