Showing posts with label Stress Test. Show all posts
Showing posts with label Stress Test. Show all posts
10/26/14
European Banking System: One fifth of EU banks fail stress test - with twenty-five European banks in trouble
Twenty-five European banks have failed stress tests of their finances, the European Banking Authority has announced.
The review was based on the banks' financial health at the end of 2013.
Ten of them have taken measures to bolster their balance sheets in the meantime. All the remaining 14 banks are in the eurozone.
The health check was carried out on 123 EU banks by the EBA to determine whether they could withstand another financial crisis.
The list of 14 includes four Italian banks, two Greek banks, two Belgian banks and two Slovenian banks.
The worst affected was Italian bank Monte dei Paschi, which had a capital shortfall of €2.1bn (£1.65bn, $2.6bn).
Read more: BBC News - Twenty-four European banks fail
10/21/14
EU - How many banks will fail ECB stress tests?
Results of the European Central Bank's Asset Quality Review (AQR)
of 130 lenders in the region are due on October 26 and will be the
latest indicator of the European Union's economic recovery.
Known as a stress test, the check-up looks at a bank's ability to withstand a future crisis and comes as the ECB takes over as a banking supervisor on November 4.
Anticipation of the results has already impacted bank shares; last week, Italy's Monte dei Paschi slumped nearly 10 percent to a record low amid fears it would fail the tests.
If a bank does fail the tests, they will have to raise capital from stock markets. In the case they are unable to do so, experts say they may have to impose losses on bondholders or tap governments or Europe's bailout fund, the European Stability Mechanism (ESM).
Read more: How many banks will fail ECB stress tests?
Known as a stress test, the check-up looks at a bank's ability to withstand a future crisis and comes as the ECB takes over as a banking supervisor on November 4.
Anticipation of the results has already impacted bank shares; last week, Italy's Monte dei Paschi slumped nearly 10 percent to a record low amid fears it would fail the tests.
If a bank does fail the tests, they will have to raise capital from stock markets. In the case they are unable to do so, experts say they may have to impose losses on bondholders or tap governments or Europe's bailout fund, the European Stability Mechanism (ESM).
Read more: How many banks will fail ECB stress tests?
Subscribe to:
Posts (Atom)