A first glance shows 24 banks failed.
It seems that while the tests were serious, this is not a major earthquake.
From the announcement
Key results of comprehensive assessment of 130 largest euro area banks:
Capital shortfall of €25 billion detected at 25 participant banks
Banks’ asset values need to be adjusted by €48 billion, €37 billion of which did not generate capital shortfall
Shortfall of €25 billion and asset value adjustment of €37 billion implies overall impact of €62 billion on banks
Additional €136 billion found in non-performing exposures
Adverse stress scenario would deplete banks’ capital by €263 billion, reducing median CET1 ratio by 4 percentage points from 12.4% to 8.3%
Exercise delivers high level of transparency, consistency and equal treatment
Rigorous exercise is milestone for the Single Supervisory Mechanism starting in November
Share
