Lloyds was projected to suffer the largest capital reduction through loan losses under the European Banking Authority (EBA) stress tests, followed by Santander and Swedbank.
The UK bank projected a 9.6% decrease in its Common Equity Tier 1 (CET1) capital ratio through impairments on financial assets at the end of the three-year adverse scenario drawn up by the EBA, the largest drop of the 48 participants.
Banco Santander estimated its CET1 ratio would deplete by 7.6%, and Swedbank by 7%,
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