Most (Not All) Of Europe's Big Banks Pass Key Health Test

At least a few of Europe's largest banks have reportedly flunked a key health test, although results aren't due for publication until Sunday amid signs of a downturn in the region's economy. Banks deemed too fragile to withstand a major business downturn would be required to reduce their assets or raise additional capital. The European Central Bank is withholding results until Oct. 26 on its recently completed stress tests on 130 of the region's largest banks. Bank managers are already informed of outcomes, but can't disclose results. Greece's Alpha Bank passed the test, according to Reuters, while Bloomberg said that Ireland's AIB Bank of Ireland and Ulster Bank had passed. Permanent TSB, a state-owned bank in Ireland failed the test, according to the Irish Examiner newspaper. Also set to fail are Banca Monte dei Paschi di Siena SpA and Banca Carige SpA, according to Bloomberg. "Not that many will fail" Credit Agricole's Nicolas Doisy told Bloomberg. All of Germany's banks passed, according to Hadelsblatt, a German newspaper. The recent round of testing was expected to be more rigorous than that of 2011, when regulators were roundly criticized for relying on numbers provided directly by the banks themselves.