• Stress test adverse scenario uses 26.4% house price fall
  • Peak-to-trough fall of 55-60%
  • Assumes 6.5% GDP decline
  • Bank funding needs of EUR 16-25 bln in central scenario
  • EUR 51-62 bln in adverse scenario
  • Three biggest banks do not need capital

Spain claims the stress tests were tougher than IMF report on banks.

In theory, the EUR 100 bln should have enough cushion for even the worst case scenario… In theory. Theoretically speaking.