BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble said
Friday that no further adjustment in the country’s banking sector is
necessary after the stress test results released today.
All twelve German banks that took part in the EU’s stress test
passed, German financial watchdog Bafin and the German Bundesbank said
in a joint statement earlier on Friday.
“For Germany no further adjustments are necessary, given that the
owners of the participating banks have already prepared capital
strengthening measures as far as it was necessary under the result of
the stress scenarios,” Schaeuble said in a statement.
Moreover, “the results of the stress tests show clearly that the
European banking sector is able to digest significant burdens,” the
minister said.
In order to pass the EU’s stress tests, banks must have at least 5%
of core tier one capital remaining after weathering the tests
challenges. The Basel III guidelines by contrast require a core tier one
capital level of just 3.5% in 2013, 4.0% in 2014 and 4.5% from 2015.
The average core tier one ratio of German banks under the stress
conditions was 7.5%, Bafin and Bundesbank said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$CR$,MGX$$$,M$$FX$]
