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Friday, July 23, 2010

European Bank Stress Test Results

by Calculated Risk on 7/23/2010 12:01:00 PM

Here are the Committee of European Banking Supervisors (CEBS) aggregate results.

The aggregate Tier 1 ratio, used as a common measure of banks’ resilience to shocks, under the adverse scenario would decrease from 10.3% in 2009 to 9.2% by the end of 2011 (compared to the regulatory minimum of 4% and to the threshold of 6% set up for this exercise). The aggregate results depend partly on the continued reliance on government support for currently 38 institutions in the exercise.
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For the institutions that failed to meet the threshold for this stress test exercise, the competent national authorities are in close contact with these banks to assess the results of the test and their implications, in particular in terms of need for recapitalisation.

Results of the individual banks and statements on follow-up actions, where needed, are provided by the banks participating in the exercise and/or their national supervisory authorities.
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CEBS will publish a summary of the 91 individual bank results, sorted by country, under this page at 18:30 CEST (17:30 BST). Links to the webpages of the participating national supervisory authorities will be activated at the same time.
So the details will be available shortly.

The WSJ reports: German financial supervisors say Hypo Real Estate is the only German bank to fail stress test. All Dutch banks pass. All Spanish listed banks pass.

CNBC reports: Portuguese, Dutch, Italian Banks Pass Stress Test, All German Banks Except HRE Pass, France Top 4 Banks Pass

Reuters reports: Several Spanish Savings Banks Fail Stress Test: Report