German co-operative mortgage lender Muenchener Hyp failed a health check led by the European Central Bank, falling €229m short of its capital needs as of the end of last year.
The bank had already publicly said that it expected to fail the test.
It pointed out today that it had raised around €415m this year to fill the gap, meaning that it has already more than made up for the shortfall identified by Europe's new top regulator.
The new capital brought its Common Equity Tier 1 ratio - a key measure of capital strength in the tests - to 12.3% at the end of September, compared with the ECB's minimum of 8%, the lender said.
Muenchener Hyp, which is owned by its 77,000 members, most of whom are customers, is one of the few lenders in the health checks that does not use the IFRS international accounting standard in balancing its books, instead using German HGB rules.
The co-operative bank, one of the smallest to take part in the tests, will fall under the ECB's direct purview when it takes over responsibility for euro zone banking supervision next month.
