Today European regulators publish the results of the latest stress tests carried out on 48 banks in the EU. The Stoxx Europe 600 Banks index is off 23 per cent over the last 12 months. The European Banking Authority says that non-performing loans across the region now stand at 3.6 per cent, though at Italian banks it stands officially at 9.7 per cent. The latter are also under pressure from the fall in value of the Italian sovereign debt they hold, which forms part of their core capital ratios.
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