Baudolino schreef op 29 juli 2016 22:08:
Stress tests by the European Banking Authority found that BMPS, the world's oldest bank, would have the greatest difficulty out of 51 of Europe's top banks covering its toxic loans between now and 2018 in adverse economic conditions.
The EBA unveiled that the Italian lender's fully-loaded common equity tier 1 capital (CET1) ratio – a key measure of a bank's ability to withstand shocks - would fall into negative territory if faced with an adverse economic scenario in 2018; a swing of 14.23 percent from what is expected to be the baseline scenario.
BMPS was a long way ahead of the banks with the nearest worrying transitional CET1 ratio. They are:
•Raiffeisen Landesbanken (Austria) 6.14 percent
•Banco Popular (Spain)7.01 percent
•Unicredit (Italy) 7.12 percent
•Barclays (U.K.) 7.30 percent
•Allied Irish Banks (Ireland) 7.39 percent
•Commerzbank (Germany) 7.42 percent
•Bank of Ireland 7.69 percent
•Deutsche Bank (Germany) 7.8 percent
•Societe Generale (France)8.03 percent
On Friday, BMPS announced in a statement Friday that it had secured underwriters to back a turnaround plan involving the sale of 9.2 billion euros ($10.3 billion) in bad loans and a 5 billion euros capital increase.
Italy's banks have been hit hard by the level of its toxic loans. These were not unpaid home loans but small and mid-undercapitalized companies that make up the bulk of the country's economy.
Unlike previous tests there are no pass-or-fail rankings this year. Instead the results will be passed on by the EBA to individual country regulators. The results were put out late Friday night in Europe to allow the European Central Bank, authorities and investors to plot their next move.
The level of non-performing loans across Europe has become a major concern for investors.
"We have 1 trillion (euro) of NPLs - it's a big figure," Andrea Enria, chairman of the European Banking Authority (EBA), told CNBC ahead of the tests' publication.
"The level has started decreasing in all countries. The point is the pace of adjustment. Are we adjusting the levels fast enough? You don't want to be too fast, because then you have a massive capital impasse and fire sale of assets, but you don't want to be too slow, because then the banks would be unable to lend and remain unprofitable for long periods of time."