Banks in UK, Germany struggle in EU 'stress tests'

Stress tests conducted by the European Banking Authority inform EU supervisors' discussions on whether to insist banks build up their capital cushions to guard against potential losses. [Photo: AFP]

British and German banks suffered the biggest potential financial hits in the latest round of "stress tests" released by EU regulators Friday, as risks such as Brexit and Italy's debts stalk Europe's economy.

Overall, however, the European Banking Authority (EBA) and the European Central Bank (ECB) said the stress-tests showed that Europe's banks were in better shape as a result of clean-up measures undertaken since the 2008 global financial crisis.