UK-based banking groups Barclays and Lloyds were among the worst performers in the European Banking Authority’s (EBA) EU-wide stress test, which involved 48 banks.

In the test, Barclays recorded a core capital ratio of 6.37%, while Lloyds ended up with 6.8%, reported Reuters.

Besides these two banks, Italian lenders Banco BPM and UBI Banca also performed poorly in the test with core capital ratios of 6.67% and 7.46%, respectively.

However, none of the 48 banks assessed were found to be below the threshold mark of 5.5%.

EBA conducted the stress test in collaboration with the European Central Bank (ECB) and the European Systemic Risk Board (ESRB).

A stress test determines a bank’s ability to withstand recessions and other market shocks. Any bank found to maintain inadequate buffer capital can be asked by the authorities to raise money.

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The annual exercise is carried out in order to prevent banking failures during economic downturns and avoid subsequent government bailouts.

EBA director of economic analysis and statistics Mario Quagliariello said: “The outcome of the stress test shows that banks’ efforts to build up their capital base in the recent years have contributed to strengthening their resilience and capacity to withstand the severe shocks and material capital impacts of the 2018 exercise.

“The results will be used by supervisors as part of their wider assessment of banks’ vulnerabilities and input to their supervisory decisions.”