As European banks gear up for stress tests, one analyst told CNBC that almost none of them would pass the U.S.'s tougher scrutiny.
The proposed banking union for the euro zone took another step forward with the ECB giving further detail of its stress tests.
European bank stress tests are one of the world's biggest risks going into 2014, Huw van Steenis, head of European financial services research at Morgan Stanley, has told CNBC.
Euro zone bank shares tumbled Wednesday, after the European Central Bank (ECB) revealed tough new stress tests for the region's financial institutions.
Most banks got the green light from the Fed with their capital plans. In a surprise, Goldman Sachs and JPMorgan Chase received only "conditional approval."
The Federal Reserve's most recent stress test shows all but one of the nation's 18 largest banks are prepared to handle a severe economic shock. That is an improvement from last year when two banks failed to meet the minimum requirements outlined by the central bank.
When it comes to possible losses from corporate loans, no other bank even comes close to Goldman Sachs.
Unique among the banks, Bank of America actually came in higher than the Fed on trading losses.
Where stress tests are concerned, call Citigroup 'most improved'.
These two banks may find it hard to significantly increase dividends or buybacks.