Committee of European Banking Supervisors (CEBS), the umbrella body for Europe’s banking regulators, has said that seven out of 91 European banks have failed to clear the stress test.

The test was conducted to assess the overall resilience of the EU banking sector and the banks’ ability to absorb further possible shocks on credit and market risks, including sovereign risks.

Out of seven banks, which could not meet the requirements of the tests, five were from Spain, one from Germany, and one from Greece.

Spain’s Espiga, Diada, Banca Civica, Cajasur and Unnim failed the tests, along with Germany’s Hypo Real Estate and Greece’s ATEbank.

The seven banks which failed the test were asked to to raise their capital by EUR3.5bn by CEBS.

In a statement CEBS said: “ The aggregate results suggest a rather strong resilience for the EU banking system as a whole and may appear reassuring for the banks in the exercise, although it should be emphasized that this outcome is partly due to the continued reliance on government support for a number of institutions. However, given the uncertainties over the actual path of the macro-economic recovery, the result should not be seen as a reason for complacency.”