The four UK banks included in the Committee of European Banking Supervisors' stress tests passed comfortably, as expected. However, individual results reveal that it is Lloyds Banking Group that would be left with the lowest tier-one capital ratio in the a worst-case scenario, while Royal Bank of Scotland would be the hardest hit.

CEBS announced this afternoon that five Spanish banks, one German bank and one Greek bank had failed the European stress tests under worst-case scenario conditions.