And here they are:
Austria: Oesterreichische Volksbanken AG
Greece: EFG Eurobank Ergasias, ATEbank
Spain: Banco Pastor, CaixaCatalunya, Caixa D’Estalvis Unio de Caixes de Manlleu, Banco Sabadell, Grupo Caja3
The worst by far is ATEbank, whose adverse scenario Core Tier 1 Capital ratio amounts to a mere -0.8%. It would require €713 million to reach the capital benchmark set forth by the EBA.
Read the full report here.
Markets were up a bit shortly after the tests, but seem relatively unaffected.
Analysts had predicted that 10-15 banks would fail the tests, so the resultant 8 failures calls into question the stringency of the testing procedures. Regardless of questions about the accuracy of data collection, investors and journalists have argued that the tests fail to take into account larger macroeconomic issues: for example, although Portugal’s banks all passed the test, a full 8% of their assets are being funded by the lender of last resort.
On the other hand, both German and Spanish banks have been particularly vehement in criticising the new testing rules, which made passage criteria more rigid and called for greater disclosure of data than those conducted last year.
The tests were meant to bolster confidence in the European economy and encourage interbank trading, but only sub-par results would have brought about any significant action in the markets.
Even if we are to trust the stringency of these analyses, a clean bill of health for the banks will not mitigate deeper structural problems in the European economy