Stress tests have become to German banks

Stress tests for the European banks are just beginning

In brief: Stress tests are wandering through Europe in search of new victims. At this time, German banks have come to check.

Heads of the largest credit institutions in Germany have given their consent to participate in Pan-European “stress tests”. By the positive solution of the announcement prompted the details of the planned inspections, according to a press release of the Central Bank of Germany and the Federal Financial Supervisory Authority of Germany (BaFin). More information about the mechanism of checks will be issued later.

The next round of “stress tests”, planned by the European Central Bank (ECB) and the Oversight Committee for European banks (CEBS), will undergo more than 100 banks across Europe, including 15 German The previous series of stress tests survived three German financial institutions, including major Deutsche Bank and Commerzbank, and Bank of Bavaria BayernLB. According to unofficial information, leadership in the bank “stress-tests” in Europe to date belongs to the largest Spanish bank Santander. The decision to hold a special “stress tests” for leading banks of the Old World was taken at the EU summit, which ended 17 June 2010. Brussels. These audits shall assess the ability of European banks to withstand sudden financial shocks through the assessment, in particular, the volume of loans issued by banks with high risk of default. Stress tests conducted on a hypothetical level, designed to assess the extent of potential losses of financial institutions under various macroeconomic scenarios, such as re-recession. According to the results of stress tests banks may be extradited to the recommendation to raise additional capital to enhance financial stability.

Anrey Torbinski
2010-06-30 15:19, Economics.

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