Several banks are likely to need to raise fresh capital, if European stress tests are anything like their American predecessors a year ago (see chart, right). The key question for the resulting stability of the banking sector is what the market has already priced in.
This time last year, US stress tests were published. Bank of America came off worst, needing $33.9bn more equity (though in the days following, its share price rose).
After the tests, US regulators ordered 10 of the largest banks to add a total of $75bn in equity, resulting in share sales, conversion of preferred stock and the occasional debt sale too.