A study conducted by S&P stress test on European banks that included 70% of the whole banking sector showed that 22 out of the 99 banks would need to raise 161 billion euros to cope with a strong economic recession from 2011 to 2015.

Financial institutions need recapitalization to get a Tier 1 of 7%, where the most fragility was noticed in Greek, Irish, Spanish and Portuguese banks, the study showed.

In addition, the study expects government borrowing requirements to increase by 20% over the downturn period.