Royal Bank of Scotland Group plc (LON:RBS) has insisted it is on track with plans to make sure it can withstand finanncial shocks despite performing poorly in latest European stress tests.
RBS capital ratios dropped more than seven percentage points in European Banking Authority (EBA) tests to assess how big banks would do in another major crisis.
The tests suggested the 73%-taxpayer owned bank would be left with just an 8% capital ratio buffer. The minimum considered acceptable is 4.5%.
Of the other big UK banks reviewed in the tests, Barclays PLC's (LON:BARC) capital ratios would fall by less than RBS - four percentage points - but would be left with a lower capital ratio buffer of 7.3%.
RBS and Barclays were found to be among the 15 weakest of the 51 banks tested by the EBA, with RBS the third weakest performer.
RBS finance chief Ewen Stevenson said: "The EBA stress test results demonstrate our continued progress towards transforming the balance sheet to being safe and sustainable.
"Over recent years we have materially strengthened our CET1 ratio, substantially reduced our balance sheet and leverage, and continued to de-risk our asset exposures.
"We are confident that in achieving our strategy, we will transform RBS into a low risk, resilient bank."
Elsewhere in Europe, banks in Austria, Ireland and Italy came out under the severe stress scenario as less resilient.
Key drivers were domestic market pressures for Irish and Italian banks and higher credit risk of cross-border activities for Austrian banks.
Italy's Banca Monte dei Paschi di Siena S.p.a (FRA:MPI3) was the only bank to have a negative CET1 ratio, with the other four Italian banks tested showing results above 7%.
Rating agency Moody's described the performance of Dutch, Spanish, and German banks as satisfactory and said UK banks' results were varied, partly reflecting commercial property exposures.
Moody's said that despite the mixed performance, all 51 banks demonstrated better resilience to stressed conditions than in 2014.
A Moody's senior vice-president, Katharina Barten, said: "The majority of EU banks have robust capital levels in the adverse scenario.
"Of the 51 tested banks, 43 maintained common equity tier 1 (CET1) ratios above 8%, and with just one exception, they all maintained positive CET1 ratios, with the lowest at 6.1%."