Some European banks will fail stress tests: Macquarie

Australian bank Macquarie expects some European banks to fail Friday's stress tests.

Macquarie believes a number of banks might not be able to resist severe shocks in the future - including Germany's Postbank, Italy's Banco Popolare, Portugal's BCP and Spain's Sabadell. Four Greek banks were also on Macquarie's list: National Bank of Greece, EFG Eurobank, Alpha Bank and Piraeus Bank. Macquarie analysts believe the banks would not even satisfy basic criteria based on the European Commission's current macro forecasts, AFP reports. The tests also check bank resources in the event where growth is three percentage points lower than forecast and on sovereign debt losses. ...