Twenty-five banks recently have failed a financial health test intended to measure organizations' ability to withstand a recession, according to Reuters. However, that's not all of the banks that would have failed had the full range of Basel III requirements been applied.

The Basel III requirements are a set of reform measures introduced by the Basel Committee on Banking Supervision. The set of rules is supposed to strengthen the banking sector to increase protection against a financial fallout in the event of a recession and enhance the banking regulatory framework, according to the Bank for International Settlements.

Basel III capital rules are intended to come into full effect by 2019, which is good news for 36 firms that would have failed the test had the full range of rules been applied now, according to Reuters.

"On a fully loaded basis, many banks have only passed the stress test by very thin margins or could be challenged in meeting the requirements, so they will be expected to do more," Carola Schuler, managing director for banking at ratings agency Moody's, told the news source.

The Basel III rules are intended for global use. This was the first time the full list of ratios for the new guidelines were used across Europe's 130 top banks. The significant amount of bank failures has caused fear that the five-year eurozone crisis may be resurging, according to The Guardian. The news source reported that no banks in the United Kingdom failed the test. Failing banks included:

• 1 in Germany
• 1 in Ireland
• 1 in France
• 1 in Portugal
• 2 in Slovenia
• 2 in Belgium
• 3 in Cyprus
• 3 in Greece
• And 9 in Italy

Reuters reported that Santander's low Basel III ratio could be cause for alarm in the future as the bank is systematically important, meaning its collapse could mean a far-reaching financial crisis. Joining Santander were three other systematically important banks.