Eight of 90 European banks have failed in stress tests used to project how they would fare in another recession.
Sixteen others would barely stay above water in another crisis, according to results released on Friday.
The failing banks should "promptly" move to strengthen their financial cushions, the European Banking Authority (EBA) said as it released the results.
Spain, where many local savings banks have been closely watched by analysts, fared worst, with five banks ruled unfit to sustain the regulator's stress scenario.
The banks were Catalunya Caixa, Caja de Ahorros de Mediterraneo, Banco Pastor, Unnim and Grupo Caja.
Two Greek banks, EFG Eurobank and ATEBank, also failed, as did Austria's Oesterreichische Volksbank AG.
Al Jazeera's Nick Spicer, reporting from Frankfurt on Friday, said that bank stress tests are done often, but that "this is different because it sort of seeks out the public good ... it looks at systemic risks affecting the system as a whole".
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