A view of a "Banca Popolare di Milano" bank branch in Milan, Italy, Sunday, Oct.26, 2014. (AP Photo/Luca Bruno)
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Only eight banks haven't already plugged capital gaps or satisfied the ECB with plans to shrink, out of 25 found with a shortfall.While the ECB report shows 13 banks with capital gaps after measures taken this year, footnotes explain that five of them – two in Greece, two in Slovenia and Belgium's Dexia SA – don't need to proceed with finding funds beyond what they've already raised, or have also reduced balance sheets adequately or are being wound down.To pass the Asset-Quality Review, which scrutinized loans on balance sheets as of Dec. 31 last year, banks needed common equity Tier 1, the highest quality form of capital, equivalent to at least 8 percent of risk-weighted assets.The median CET1 ratio would fall to 8.3 percent from 12.4 percent, the ECB said.An extra 136 billion euros of non-performing exposures were added, with the stock now standing at 879 billion euros, the ECB report said."With its assumptions, the ECB has set an inflationary scenario on average for the euro area so that not too many banks would fall under the red line," he said in a statement.Even banks that failed outright in the review insisted they've taken capital measures that haven't yet been recognized by the ECB.
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