LONDON-Just seven European banks failed a health check and were ordered to raise their capital by 3.5 billion euros (£2.9 billion), much less than expected, confirming fears the continent's long-awaited stress test was too soft. Results of the test of how 91 banks in 20 countries would cope with another recession was released on Friday in a bid to restore investor confidence after the Greek debt crisis spooked markets earlier this year. But it fell on deaf ears. "There is little evidence that the tests have been applied consistently and there is a distinct lack of credibility, making this a wasted opportunity," said Richard Cranfield at international law firm Allen & Overy. While the modest findings cast doubt on the credibility of the bank tests, some analysts said that may not matter because the European economy is improving fast.
