Analysts cast doubt today on the credibility of the stress tests applied to European banks.

EUROPE’S banks got a clean bill of health from stress tests that assumed a severe double-dip recession and a rise in interest rates over the next two years.

ONE German, two Portuguese and a number of Spanish banks are expected to fail the EU’s stress test, with Allied Irish Bank being given a conditional pass according to official hints.

EUROPE’S banks have been asked to estimate how much additional capital they would need under two adverse scenarios as part of stress tests aimed at reviving confidence among investors.

More than £93bn (€119.8bn) was wiped from the value of the UK's biggest companies today as London's FTSE 100 suffered its biggest fall since Black Monday.

Investors were reeling today after European markets dived 6% in the aftermath of another weekend of financial turmoil.

Asian stock markets plunged today as government bank bailouts in the US and Europe failed to alleviate fears of a global financial crisis that would depress world economic growth.

Germany became the latest country to act over the financial meltdown, with a new rescue plan for its second biggest commercial property lender and a 100% guarantee on private bank accounts.

The German government and private banks have agreed to a new €50bn deal to bail out the country’s second largest commercial property lender Hypo Real Estate, the country’s finance ministry said tonight.

The European Commission was still waiting today for the Government to submit for approval full details of its bank guarantee plan.

THERE will be no impact in Ireland from the fall of Fortis and Hypo Real Estate, despite both banks having a significant presence here.

Banks and other lenders are reducing the amount of money they will lend to fund private equity and leveraged acquisitions by as much as 20%, it has been revealed today.

DEPFA, the IFSC-headquartered lender, has agreed to a €5.6 billion takeover by Hypo Real Estate (HRE).

GERMAN stocks declined yesterday, led by ThyssenKrupp on speculation the outlook for the industry next year is clouding.