EBA欧洲银行-EBA-BS-2012-048-final_6页_244kb

Summary of the EBA Report on the Fulfilment of the 2011 EU-wide Stress Test Recommendation

Core Content

This report evaluates the implementation of the EBA's July 2011 Recommendation, which required national supervisory authorities (NSAs) to ensure that banks with a Core Tier 1 (CT1) capital ratio below 5% in the adverse stress test scenario took appropriate mitigating actions. The report also outlines the EBA's monitoring of these actions and their alignment with the regulatory requirements.

Main Points

• Stress Test Overview: The 2011 EU-wide stress test involved 91 banks from 21 EEA countries. The aggregate CT1 ratio of the 90 banks that published results dropped from 8.9% to 7.7% over two years of stress, primarily due to impairment charges.

• Banks Below 5% CT1 Threshold: Out of the 90 participating banks, 8 had a CT1 ratio below 5% in the adverse scenario, resulting in a total capital shortfall of EUR 2.5 billion. These banks were required to submit a capital restoration plan by 15 October 2011, with full implementation by the end of 2011.

• Mitigating Measures: NSAs ensured that all banks with a post-stress CT1 ratio below 5% took measures to restore their capital. These included capital strengthening, loss recognition, and restructuring. The EBA noted that these actions were generally sufficient and supported by NSAs, with some additional measures implemented in response to worsening market conditions.

• Restructuring Processes: Most of the banks with capital shortfalls underwent or are undergoing significant restructuring. This includes mergers, integration into larger groups, and changes in ownership structures. The EBA acknowledges this as a positive development and appropriate response.

• Special Cases: Some banks are subject to more stringent measures under EU/IMF assistance programmes, including the "Troika" monitoring (EU Commission, ECB, IMF). These banks, such as those in Greece, are being closely followed to ensure compliance with higher capital targets.

• Germany: Landesbank Hessen-Thuringen (Helaba) was monitored separately as it did not publish its results. It increased its CT1 capital by EUR 1.92 billion through "hardening" its participation capital.

• Link to Capital Exercise: The December 2011 Capital exercise, which involved 71 banks, applied a higher CT1 threshold of 9%. It was not a stress test but a capital adequacy review. The EBA has been monitoring these banks to ensure they meet the 9% CT1 target by June 2012.

• Ongoing Monitoring: The EBA continues to monitor the implementation of mitigating measures from a microprudential perspective. It is also developing its approach for the next EU-wide stress test in 2013.

Key Information

• Number of Banks Below 5% CT1: 8 out of 90 participating banks.
• Total Capital Shortfall: EUR 2.5 billion.
• Implementation Timeline: Banks were required to submit capital restoration plans by 15 October 2011 and implement them by the end of 2011.
• Additional Measures: NSAs implemented additional measures in response to deteriorating market conditions.
• Restructuring: Banks with capital shortfalls are undergoing restructuring, including mergers and ownership changes.
• Capital Exercise: The December 2011 Capital exercise set a higher CT1 threshold of 9% for 71 banks, which is not covered in this report.
• Monitoring: The EBA monitors the progress of banks and supports NSAs in their supervisory activities.

Conclusion

The EBA is generally satisfied with the progress made in fulfilling the July 2011 Recommendation. The mitigating actions taken by banks have been sufficient, and the restructuring of affected institutions is seen as an appropriate response. The report highlights the importance of ongoing monitoring and the need for continued efforts to ensure capital adequacy in the EU banking sector.