Permanent TSB ‘failed’ tough ECB bank stress tests

Permanent TSB Group Holdings, Ireland’s smallest state-owned bank, failed European Central Bank stress tests under the adverse scenario being assessed by regulators, according to a person with knowledge of the matter.

Permanent TSB faces a capital shortfall of between €700m and €800m under an extreme case, according to analysts at Investec and Merrion Capital.

The bank passed the two other elements of the ECB’s assessement consisting of an asset quality review and base case scenario, said the person, who asked not to be identified.