Two of Ireland's main banks came out among the worst in a European Union stress test aimed at cleaning up balance sheets to boost the flow of credit to the bloc's economy.
AIB and Bank of Ireland ranked among the worst out of 51 lenders across the bloc.
The European Banking Authority, which coordinated the test of lenders from across the bloc, said the results showed there was still more work to do to put banks on a firmer footing.
The results came after Italian lender Monte dei Paschi, weighed down by billions of euros in bad loans, put together an 11th-hour rescue package to raise some €5bn to mitigate fallout from the stress test outcome.
The EBA test looked at how banks could withstand a three-year theoretical economic shock which ended with the Italian lender, having a core equity capital ratio of minus 2.44%.
This was the third stress test of banks in the EU since taxpayers had to bail out lenders in the 2007-09 financial crisis, with no pass or fail mark this time round.
Analysts have informally set a basic pass mark of 5.5%, the threshold set in last year's test.
The test involved scenarios including EU economic output that was 7.1% below the baseline over the next three years and a 20% drop in interest income.
Like Monte dei Paschi, AIB was also below this level at 4.31%.
Markets will also look at how many banks were able to maintain a core ratio of capital to risk-weighted assets of 7%. This is a typical level for triggering the write-down of bonds issued by banks to replenish capital.
Spain's Banco Popular, Bank of Ireland and Austria's Raiffeisen all ended the test below this level at 6.62%, 6.15%, and 6.12%, respectively.
At the start of the test, the 51 lenders had an aggregate core ratio of 12.6%, with all capital requirements factored in.
This fell to 9.2% by the end of the test, a drop of 340 basis points, equivalent to €226bn of capital.
For the first time, the EU test included the impact of conduct risks such as fines and settlements on capital during the exercise.
EBA said the total hit from conduct costs was €71bn. The largest impact was from credit or losses on loans, totaling nearly €350bn across all the banks tested.