The officials have claimed that the European Union stress tests conducted on all EU banks show that the banks are strong enough and possess stability. The result for the stress tests have encircled out a meager seven out of 91 lenders, as failed.

However, five of the ones unable to sustain the stress tests are Spanish banks.

These stress tests were aimed to discern the financial stability of the EU banks i.e. whether they are strong enough to face another economic turmoil.

In addition, many EU leaders have cited that the results have been publically heralded primarily to drive out the emerging jitters in the market and debunk myths related to the European banking system dependent on Government bailout plans.

Also, it aims to flourish the lost confidence among the investors.

A joint CEBS-ECB-EC statement has clearly highlighted that the banks, which have been unable to survive the test should take their failure in a positive stride and undertake stern measures to get back their strong capital positions. Also, he posted that assistance can be taken by raising money on the markets or using Government rescue funds.

The Committee of European Banking Supervisors (CEBS), European Central Bank (ECB) and European Commission (EC) posted his comments on the tests, “confirm the overall resilience of the EU banking system ... and are an important step forward in restoring market confidence”.