Here Are The 6 European Banks That May Need A Bailout

Monte dei Paschi di Siena

Right now, the results of the Europe wide stress tests are being dissected, but the common conclusion is that not many, if any, banks are in need of recapitalization.

But when you take into consideration scenarios that include losses on sovereign debt, Credit Suisse has found that there are some that may need considerable cash.

Credit Suisse, in their stress tests, combine an economic downturn scenario with a sovereign debt scenario. The economic scenario focuses on loan loss provisions, while the sovereign debt scenario focuses on marking debt to the CDS curve, less 3%. Credit Suisse finds this a more likely stress test than any haircut.

Germany: Postbank

Total Stress Test Impact: €2.426 billion

Resulting Tier 1 Capital Ratio: 4.1%

Money Needed To Recapitalize to Tier 1 of 6%: €1.355 billion

Source: Credit Suisse Combined Stress Test Results

Greece: ATE Bank

Total Stress Test Impact: €589 million

Resulting Tier 1 Capital Ratio: 0.3%

Money Needed To Recapitalize to Tier 1 of 6%: €892 million

Source: Credit Suisse Combined Stress Test Results

Greece: National Bank of Greece

Total Stress Test Impact: €3.335 billion

Resulting Tier 1 Capital Ratio: 4.1%

Money Needed To Recapitalize to Tier 1 of 6%: €1.353 billion

Source: Credit Suisse Combined Stress Test Results

Greece: TT Hellenic Postbank

Total Stress Test Impact: €690 million

Resulting Tier 1 Capital Ratio: 2.0%

Money Needed To Recapitalize to Tier 1 of 6%: €309 million

Source: Credit Suisse Combined Stress Test Results

Greece: Piraeus Bank

Total Stress Test Impact: €878 million

Resulting Tier 1 Capital Ratio: 5.8%

Money Needed To Recapitalize to Tier 1 of 6%: €54 million

Source: Credit Suisse Combined Stress Test Results

Italy: Monte dei Paschi di Siena

Total Stress Test Impact: €2.620 billion

Resulting Tier 1 Capital Ratio: 5.5%

Money Needed To Recapitalize to Tier 1 of 6%: €592 million

Source: Credit Suisse Combined Stress Test Results

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