Austria\'s Volksbank (OeVAG) failed the EU bank stress tests, while the two other banks tested, Erste Bank and Raiffeisen International (RBI), both passed, the Austrian regulator FMA said on Friday. Erste Bank passed the test with a core Tier One capital ratio of 8.1 per cent in the event of an adverse scenario in 2012, with Raiffeisen on 7.8 per cent, the FMA said in a statement. Volksbank, on the other hand, achieved just 4.5 per cent, under the EBA\'s threshold of five per cent and so failing the test. The results were in line with expectations, the FMA said, adding that if Volksbank carried out restructuring measures already agreed with the FMA and the central bank (OeNB), it could also easily secure a core Tier One ratio of 6.5-seven per cent. \"The stress test results confirm that Austria\'s banking sector is generally well equipped against a crisis,\" central bank governor Ewald Nowotny said. OeVAG\'s result reflected the bank\'s situation in April and did not take into account measures it had taken since then, such as the sale of its eastern European arm, Volksbank International, to Sberbank of Russia, which was announced late on Thursday, said Nowotny. Should Volksbank struggle to implement a credible capitalisation plan in due time, the Austrian state could step in to help, the finance ministry said. In early 2009, all three banks tested had to tap state aid of between €1 to €2.7 billion (Dh5.1 to Dh13.9 billion) each in the wake of the financial crisis. OeVAG was the only bank of the three not to have undergone a stress test in 2010. From / Gulf News