EBA and ECB European bank test and AQR results: 25 fail ECB tests 24 fail EBA test

Author: Ryan Littlestone | Category: Central Banks
  • EBA say 24 banks failed tests
  • EBA says that total capital short fall was €24.2bn as of Dec 31 2013
  • ECB says 25 banks failed, 12 failures have already covered the shortfall
  • ECB says total capital shortfall was €25bn

Full list of banks with capital shortfalls, failure of tests or AQR

  • Commerzbank passes (Correction by BBG)
  • Liberbank – Spain  (AQR)
  • Banco Popolare – Co-op & regionals Romagna, Milano, Sondrio, Vicenza – Italy (adverse)
  • Hellenic Bank – Cyprus ( AQR & Adverse)
  • Bank of Cyprus (AQR & Adverse)
  • Caisse De Refinancement de l’habitat – France (AQR)
  • Banco Comercial Portugues (adverse)
  • Permanent TSB – Ireland (adverse)
  • Cajamar Bank – Spain (adverse)
  • National bank of Greece
  • NCG Banco – Spain (adverse) Corrected as pass
  • Eurobank – Greece
  • Nova Kreditina – Slovenia (adverse)
  • AXA Bank Europe –  Belgium unit of France’s AXA (adverse)
  • Dexia Bank – Franco/Belgium (adverse)
  • Muenchener – Germany ( AQR & Adverse)
  • Volksbanken – Austria (adverse)
  • Co-operative central bank – Cyprus
  • Piraeus Bank- Greece
  • Banco Monti Paschi – Italy
  • Banca Carige – Spain
  • Veneto Banca – Italy
  • Nova Ljubljanska – Slovenia
  • Banco Piccolo Credito Valtellinese – Italy

You can read the full list from the ECB’s result document here The headlines have come out with basically every bank listed If you want the comprehensive list you can catch it here from the ECB The ECB says;

  • Total capital shortfall in 25 failed banks €25bn (Many in market were expecting to see a short fall of between €30-€60bn, so good news on that front)
  • Of the 12 banks that have already addressed cap shortfall, have increased it by €15 so far in 2014
  • That AQR showed at the end of 2013 banks needed to adjust their book values by €48bn
  • Banks non-performing loans to 2013 ye rose €136bn to €879bn
  • Severe stress test scenario would deplete banks CET 1 capital ratio by €263bn, would result in tier ratio dropping to 8.3% from 12.4%
  • Largest 30 participating banks have strengthened balance sheet by over €200bn since July 2013
  • Will address as priority consistency of capital definition

Watch the press conference here. From a first glance the news is good for European banks and the numbers that we are looking at for the shortfalls is fairly low. It’s a successful report for banks and the market is likely to react positively when markets open later.

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