by Mike ‘Mish’ Shedlock
The EBA’s latest “Stress-Free” tests of 51 banks Eurozone have a minuscule overall capital shortfall of 5.6 billion euros.
A ZEW study using more reasonable stress test measures concluded something much different.
According to ZEW, capital shortfalls of publicly listed banks in a market-based stress test totaled 675 billion euros.
Crédit Agricole, BNP Paribas, and Deutsche Bank were the worst of the lot.