Analysts had expected five to 10 banks to fail the test, but estimated the capital shortfall could be over 30 billion euros. As expected, no big banks failed the health check.

“Arguably the failure here is not the banks concerned, but the test itself. 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, Chairman Global Corporate Group at Allen & Overy.

The Committee of European Bank Supervisors (CEBS), said its test was more severe than the U.S. process.

Europe tested how 91 banks would cope with another recession and losses on government debt.

This collapse potential for the euro means that there will be period of rapid adjustments that create Forex profit opportunities.

It aimed to repeat a health check on U.S. banks last year that helped restore investor confidence and underpinned a recovery by bank shares.