Twenty-four European banks fail financial stress tests

One in five European banks have failed crucial tests of their financial strength, leaving a €25bn (£19.6bn) capital hole in the continent’s banking system at a time of renewed fears that the five-year long eurozone crisis may be flaring up again.

EU financial watchdogs warn of funding squeeze

(Reuters) - Three European Union financial watchdogs warned that a funding freeze will hamper their efforts to help Europe avoid another financial crisis.

Deflation, emerging market fears set scene for tough EU bank tests

(Reuters) - Fears of euro zone deflation, emerging markets turmoil and a determination not to repeat past mistakes mean European regulators are likely to come up with the toughest set of tests for the region's banks that they have ever faced.

European banks may need to raise 200bn euros

European banks may have to raise a collective 200bn euros ($276bn; £175bn) to boost their capital reserves.

The proposal is being made by the European Banking Authority (EBA), which wants the banks to have more funds in reserve to help protect them from any future shocks in the financial markets.

BBC business editor Robert Peston said banks may struggle to raise the money.