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Barclays and Lloyds fare poorly in EU bank stress tests

UK banks post unexpectedly weak results in European Banking Authority’s assessment

Barclays unexpectedly posted the worst results in a stress test of European banks Friday, with a key capital measure dropping close to what investors consider the bare minimum needed to withstand a hypothetical economic crash.

The results will amplify investor attention on another round of tests by the Bank of England in December and come as British and European banks attempt to plan for the potential impact of Brexit even as the terms of Britain’s separation from the European Union remain unclear.

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