Seven European banks stress test suspended, five of them Spanish
| Date: July 24, 2010 | Source: Sources |
| Category: Business | |
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Loading ... Much has been talk of the strength of the financial sector, and that Spain has far exceeded the stress test, and the truth is that it is true, especially banks, although banks have not had the same fate. Analyzing each of the other currency, of the seven European entities who discontinued stress test, five of them are Spanish savings banks (also must be said that the country is more to banks and submitted to the stress test).
The German bank Hypo Real Estate mortgage (HRE), the Greek Agricultural Bank (ATEbank) and four groups of Spanish savings banks, as well CajaSur are the seven entities who fail the stress tests developed by the Committee of European banking (CEBS) on 91 community banks failing to meet the objective of maintaining at least a Tier 1 capital ratio of 6% in 2011.
Specifically, the nationalized HRE is the only one of the 14 states examined in suspend Germanic since under the most adverse scenario, which includes the impact of sovereign risk, reduce their Tier 1 to 4.7%. For his part, ATEbank is the only one of six states examined in Greek not meet the minimum standards established by having a Tier 1 ratio of 4.36% in the most demanding of the scenarios.
The four groups of Spanish savings banks are suspending the Catalan Caixa Catalunya, Caixa Tarragona and Caixa Manresa, Spain Caja Caja Duero, Civic Bank (Caja Navarra, Caja Burgos and Cajacanarias) and Unimm (Sabadell, Terrassa and Manlleu). To these must be added the CajaSur Cordoba, which has been operated and sold to BBK.
Together, the seven entities that suspend need 3,500 million euros of additional Tier 1 capital, of which 2,043 correspond to the Spanish savings banks.
The European Commission, the European Central Bank (ECB) and the CEBS called these entities "take the necessary steps to strengthen their capital positions through the private sector and using, if necessary, the facilities created by the governments of Member States, in compliance with EU rules on state aid. "
"The test results confirm the overall strength of the EU banking system to negative macroeconomic and financial impacts, and are an important step to restore confidence in the markets," said the three bodies in a joint statement. The banks of other major EU countries, including Britain, France or Italy, they passed the test without difficulty.
