Credit institutions received the weakest rating of Deutsche Bank and some German Landesbank. Of these, NordLB was the last.
London, November 5 (TASR) – German banks and British banks were placed under the most recent European Central Bank (ECB) stress test of the European Banking Supervision (EBA).
EBA reports on Friday (November 2nd) in London, according to FAZ.net.
Credit institutions received the weakest rating of Deutsche Bank and some German Landesbank. Of these, NordLB was the last. Its reserve capital dropped to 7.07%. Such a bad result of the constitution, with participation in Lower Saxony and Saxony-Anhalt, is expected. In Britain they are behind the average Lloids Banking Group, Barclais Bank and Roial Bank of Scotland.
"Reserves of banks are generally low" said Stefan Venzel, spokesman for German Green for the financial policy area in the Lower Saxony Parliament.
The results of stress tests increased pressure on Deutsche Bank. Capital reserves fell to 8.14%.
The Bank's management justified the bad result, as it resulted from several extraordinary effects. By the end of 2020, Commerzbank will have a 9.93% scenario in line with the crisis scenario.
The Federal Bank believes that the German banks are ready for a financial crisis good. According to him, the institutions can also face a severe economic crisis. "Stress test confirmed that European and German banks are capable of sustaining a dramatic decline" Governor of the German Federal Bank Joachim Vuermeling said on Friday. "The last financial crisis makes sense to increase its capital and strong banking supervision" said Vuermeling, who is in charge of supervising banks.
The stress test was conducted in 48 banks in 15 EU countries. It was examined how much will be reduced in the next three years of their reserves, if there would be a strong fall in the boom, a significant increase in unemployment and a significant fall in real estate prices. The lessons learned were that banks had to increase their reserves so that they would be ready for business in a difficult period of time and banking.
Mario Kuagliariello, director of the statistical surveillance department Mario Kuagliariello, said that, in general, European banks were better prepared for a possible economic and financial crisis than a few years ago.