Hotline: 0274 383 347
Sunday, 24-8-25 19:08:35

World

Hotline: 0274 383 347

EU publish results of bank stress tests, only 7 banks fail

The European Union (EU) banking supervisors published results of the much-anticipated banks stress tests on Friday, showing only 7 out of a total of 91 European banks failed the tests.

 

 

A woman walks in front of a branch of ATEbank in Athens July 23, 2010. Greek state-controlled lender ATEbank failed the bank stress tests on Friday. (Xinhua/Reuters)

 

The Committee of European Banking Supervisors (CEBS), the London-based EU body in charge of carrying out the tests with EU national regulators, said in a press release that seven banks failed the tests and need extra money to reassure investors in their resilience to another crisis.

 

"As a result of the exercise, under the adverse scenario 7 banks would see their Tier 1 capital ratios fall below 6 percent, with an overall shortfall of 3.5 billion euros (4.5 billion U.S. dollars) of Tier 1 own funds," the CEBS said in a statement.

 

The EU supervisors had said that any bank whose ratio of Tier 1 capital fell below 6 percent would be regarded as failing the tests.

 

The seven banks included one from Germany, one from Greece and five from Spain, according to the CEBS. A total of 91 banks from 20 EU countries, representing 65 percent of Europe's banking sector, were examined during the tests.

 

The CEBS said that the objective of the tests is to provide policy information for assessing the resilience of the EU banking system to possible adverse economic developments and to asses the ability of banks to absorb possible shocks on credit and market risks, including sovereign risks.

 

The CEBS said that aggregate impairment and trading losses under the adverse scenario and additional sovereign shock would amount to 566 billion euros over the years 2010-2011.

 

"Where the results of the exercise indicate that individual banks require additional capital, these banks should take the necessary steps to reinforce their capital positions through private-sector means and by resorting, if necessary, to facilities set up by Member State governments, in full compliance with EU state-aid rules," the CEBS said.

 

At a press conference held afterwards, CEBS chair Giovanni Carosio said that the stress tests were severe and the relatively small capital shortfall was due to the huge amounts of capitals injected into the banks by the EU governments.

 

"Not only is the stress that we applied to the banks a severe one, it also does imply a very significant amount of losses," Carosil said.

 

VietNamNet/Xinhuanet   
Tags:

Malaysia launches ASEAN startup platform

Malaysia’s Ministry of Science, Technology and Innovation on June 25 officially launched “Startup ASEAN”,

ASEAN steps up terrorism fight in digital age

The Southeast Asia Regional Centre for Counter‑Terrorism (SEARCCT) under Malaysia's Ministry of Foreign Affairs held an international conference in Kuala Lumpur on June 24

Singapore's core inflation falls in May

Singapore’s core inflation and overall inflation are projected to average between 0.5% and 1.5% this year.

Indonesia concludes FTA talks with Eurasian Economic Union

Indonesia and the Eurasian Economic Union (EAEU) have officially concluded negotiations on a free trade agreement (FTA), aiming to sign the deal later this year,

ASEAN education ministers agree on joint statement on student dropout

The key content of the document titled "Accelerating Innovative Strategies: Addressing the OOSCY Challenges"

ASEAN reaffirms commitment to advancing green energy agenda

The 43rd ASEAN Senior Officials Meeting on Energy (SOME), held from June 16–18, marked a significant milestone as member states reached consensus on key strategic agendas

Indonesia to start operating first ocean power plant in 2028

The project is planned to be developed in two phases with each phase of 20 MW in East Nusa Tenggara and West Nusa Tenggara.

ASEAN identified as strategic partner of Argentina

In 2023, trade turnover between Argentina and ASEAN exceeded 9 billion USD, with Argentina

Leaders extend congratulations on Russia Day

General Secretary of the Communist Party of Vietnam Central Committee To Lam and State President Luong Cuong on June 12 cabled their messages of congratulations to Russian President Vladimir Putin on the occasion of Russia Day (June 12, 1990).

Indonesia aims to stop corn imports in 2026

President Prabowo noted that in 2024, the country imported around 500,000 tonnes of corn.

Enterprise - Brand

Company Social Media Net

Company VIETNAMNAY

Company HANEL MIROLIN

Company Keangnam - vina

Company HP Travel

Company Keloph