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This raises many other questions, on matters including how big a shock it will test; how much capital banks will need to have in this stressed scenario; and how long they will get to restock their capital if they fail the test.
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It was the only bank to be ordered to submit a revised plan after the Bank found its capital would be "exhausted" under the stressed scenario.
The closely watched measure of capital strength – known as the tier one ratio – would be 10.3% under a base scenario and fall to 6.9% under the more severe stressed scenario.
Investec: A couple of week's back Moody's said it saw potentially larger losses for Spanish banks under its stressed scenario, compared to the independent analysis underlying the capital requirements called for in September.
"These result shows that they remain capable of ensuring a strong financing of the economy both under the central scenario and under the highly stressed scenario," said Christian Noyer, governor of the Bank of France.
Under a stressed scenario in which JGB yields move up or down by two percentage points, the loss the banks would suffer must not exceed 20% of Tier-1 and Tier-2 capital.
That sounds like a lot, yet it is at the lower end of many estimates, largely because it will not include a "stressed" scenario that models the impact of a recession.
The agency is eyeing a profit of €1 billion over a 10-year lifespan but has warned it could also make an €800 million loss in a more "stressed" scenario.
The credit rating agency estimated the recapitalization needs of Spanish banks at €40 billion to €50 billion, adding that the amount could rise to as high as €120 billion "in a more stressed scenario".
"Market forces cannot have even the slightest doubt about our capacity to act even in the most stressed scenarios," Olli Rehn, the European commissioner for economic and monetary affairs, said this week.
"Market forces cannot have even the slightest doubt about our capacity to act even in the most stressed scenarios," Olli Rehn, the European commissioner for economic and monetary affairs, said after the agreement.
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