Sunday, July 17, 2011

8 European banks fail in the tests "take the pressure"

Spanish central bank governor Miguel Angel Fernandez

Oborsier newspaper said the French today, that eight of the largest European banks out of 90 banks failed to pass the tests "take the pressure," reserved for measuring the ability to face new financial shocks such as the global financial crisis two years ago
Tests conducted by the Banking Commission that included about two ninths European banks in Europe, and five failed banks in Spain and two in Greece and the Austrian bank to pass the tests, the Commission also announced that 16 banks were considered in the danger zone

Indicated that the French newspaper that the authority demanded in a statement that all the banks to take immediate action to increase diligence in its financial transactions, in a sign that these tests were in a difficult time for the European markets as investors are still in a state of anxiety because of the debt crisis of government in Greece, pointing out There are concerns that similar crises in Portugal and the Republic of Ireland, Italy and Spain

She praised the French newspaper on the results of banks led by French bank BNP Paribas, Credit Agricole, Societe Generale, which has passed the test with the pressure, saying that the three French banks have passed the test safely

For his part, Governor of the Spanish central bank Miguel Angel Fernandez, that there is no need to pump more money into the banking sector in Spain, adding that the sector is witnessing a complete restructuring
The newspaper said that the tests are a key element in efforts to deal with the debt crisis plaguing the "euro area", which aims to identify banks with weak financial performance in order to repair to be able to cope with crises similar to the debt crisis of government in Greece

The paper also said that those banks were tested to find how to reduce the impact of economic growth by 0.5 and the low market share by 15%, in addition to business losses from sovereign debt on its operations in addition to test results published the European banking details of the individual banks' exposure to religionsovereign

It is noteworthy that only seven banks have failed the test in the previous year, then was tightened after the test has been granted Irish banking sector health certificate impeccable build on the results, published last year. A few months later, collapsed banking sector in Ireland is the result that Ireland was the second Member State in the "euro area", which groups 17 countries, apply for help to save the bailout fund, headed by the European Union

In Athens, he said Aunanaan two banks, a failure in the European tests of endurance, they were in better financial condition than shown by the results of the tests, and complained about the Bank of Eurobank EFG, which tests revealed that the percentage of core capital has an 4.5% lower than the required 5% , it is not taking into account the provisions and procedures intended to promote the capital, came in a statement that the rate will rise to 7.6%, if he had been taking into account the procedures that were already approved and made public and is being applied. He pointed out that international financial support received by Greece would promote financial stability

The bank "ATI Bank" has issued a memorandum less optimistic slightly after tests revealed that the percentage of core capital stood at negative 0.8% for the deficit has 713 million euros, the equivalent of billion dollars, and added that the bank under the scenario of the opposite about the evolution of Greek economy will be most affected by the Greek bank. He said that stress tests did not take into account the value of 750 million euros from the general provisions and the issue of a future bond issue, which will pay the percentage to 6%

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