UK bank RBS was one of the worst performers among 51 UK and European banks stress tested by the European Banking Authority, the BBC reports. The Bank of England said the test showed that Barclays, HSBC, Lloyds and RBS had the resilience to maintain lending in a stress scenario. However, RBS's capital levels fell by 7.5 percentage points in a scenario that included a seven per cent fall in GDP over two years. RBS chief financial officer Ewen Stevenson said the results demonstrated that the bank was making progress "towards transforming the balance sheet to being safe and sustainable."Italian bank Monte dei Paschi had its capital "wiped out" in the same stress test, Bloomberg reports. The bank's ratio of common equity tier one capital to risk-weighted assets fell to negative 2.4 per cent. The bank has been bailed out twice by the Italian government since 2009. It is planning the sale of a bad loan portfolio and a capital raising. Reuters reports that the capital raising has been underwritten by eight banks, including JP Morgan, Mediobanca, Banco Santander, Goldman Sachs, Citi, Deutsche Bank and Bank of America.