All 15 Spanish banks pass ECB stress tests

MADRID -- With one minor exception, the Spanish banks passed the regular stress tests set by the European Central Bank, and they will not be needing an injection of capital. Good news for all, except for one of the smallest in the country, Liberbank, which came just below the mark with a deficit that has already been covered (See chart, click to enlarge). At the top of the list is another small entity, Kutxabank, followed by Bankinter and Bankia, the latter having received multi-millions in help not that long ago, and being in the midst of a row about directors' 'do-as-you-like' credit cards. Among other things resulting from the tests, the ECB has requested all of Spain's banks to get ready for a third recession -- just in case, of course. The Governor of the Bank of Spain, Luis María Linde said at the press conference preceding the presentation of the tests results, "The results allow us to think that, even though the Spanish banking sector is facing many challenges in the short and medium term [including convergence towards a new regulatory and supervisory framework, and complex economic environment that could affect their profitability], our country's financial entities face a future in good condition."  (See chart below)