It said it would have passed the test if regulators counted a debt-equity hybrid, called "silent participation", as a capital reserve, but the EBA, having initially said it would accept this, then changed its mind.

BBC: Eight banks fail EU stress test with 16 in danger zone

And the EBA is insisting that plans to cope with such a default have to be drawn up by vulnerable banks within three months.

BBC: Business

This may seem like a reward to the banks for raising 26 percent more capital than the EBA had originally mandated, but it smacks of favoritism.

FORBES: Where��s the Beef?