The 15 Spanish banks examined in the stress test of the European Central Bank stress tests passed with no further need for capital. Only one bank (Liberbank) with a theoretical suspense, and offset by the actions taken since January 2014.
Sp, spanish banks have passed the stress tests. The fifteen entities that have examined the European Banking Authority (EBA) and the European Central Bank (ECB) will not need to raise capital after the tests. One, Liberbank, did have a capital deficit of 32 million euros, with data from the end of 2013, which are taken from test reference. However, with the extension that the bank has made this year, the deficit is already covered.
The rest of the banks examined, Santander, BBVA, CaixaBank, BFA-Bankia, Sabadell, Popular, Unicaja, Kutxabank, Ibercaja, Bankinter, Catalunya Banc, NCG, BMN and Cajamar – comfortably surpassed the test, according to the Bank Spain. In fact, all exceed by more than two percentage points the core capital ratio (TSC1) 5.5% required for the adverse scenario of the stress test. Liberbank, considering the expansion done, also is more than two points the minimum set.
With these results in hand, the Bank of Spain said that “credit institutions in our country face the future in good condition, with healthy balance sheets and adequate solvency position.” That way, the body headed by Luis Maria Linde also clarifies that approaching the challenges are many. In particular, the arrival of one supervisor and the new regulatory framework and economic environment that hinders the search for yield.
Most solvents Spanish Spanish banks in the realization of the hypothetical stress scenario would maintain the greater solvency are Kutxa, with 11.82%; Bankinter, a BFA and Bankia 10.8% to 10.3%.
Suspended: which European banks will have to raise capital? – Italy and and Greece..
The bank with the largest deficit is Italian Monte dei Paschi, will need 2,110 million of capital to strengthen its solvency. It follows the Greek Eurobank Ergasias, with a mismatch of 1.760 million and the Portuguese BCP, with 1,150 million.
Eight other Italian banks suspended the exercise, but most have taken steps in 2014 to meet their capital needs. But with Monte dei Paschi, Banca Caringe (810 million), Banco Popolare di Vicenza (220 million) and Banca Popolare di Milano (170 million) require more equity.
The entity Helena National Bank of Greece (930 billion deficit) and the Cyprus Hellenic Bank (180 million) do not stand the test of regulators.
The remaining suspended and they need more capital are the Dexia (340 million) and AXA Bank Europe (70 million) Belgian; Austrian Volksbanken (860 million); Irish Permanent TSB (850 million); and Maribor and Nova Ljubljanska (30 million each) Slovaks.
Banks that fail the test (based on 2013 data), but this year they have taken steps to strengthen their position and do not need more capital and are the Bank of Cyprus and Cypriot Co-operative Central Bank; German Münchener Hypothekenbank; French CRH; Greek Piraeus Bank; and Banca Piccolo, Italian Banca Popolare Dell’Emilia Romagna; Banca Popolare di Sondrio; Veneto Banca and Banca Popolare.
Now, the question is… WILL THIS HELP TO SPANISH BANKS BACK TO GIVE AFFORDABLE MORTGAGES FOR BUYERS?