EBA欧洲银行-Press-release-EBA-9-02-2012_1_3页_218kb

EBA Board of Supervisors Summary: Aggregate Assessment of Banks' Capital Plans

Core Content

The European Banking Authority (EBA) Board of Supervisors conducted its first aggregate assessment of banks' capital plans in response to the EBA's Recommendation on recapitalisation. This assessment aimed to evaluate the overall effectiveness of the measures proposed by banks to address capital shortfalls and ensure compliance with the regulatory requirements.

Main Findings

• Capital Surplus: The aggregate assessment revealed that the proposed measures result in a capital surplus of approximately 26%, which provides some flexibility in case certain actions do not materialise.
• Focus on Direct Capital Measures: The majority of the measures (96%) are direct capital measures, such as capital raising, retained earnings, and conversion of hybrid instruments to common equity. These measures are expected to cover the majority of the capital shortfall.
• Impact on Risk-Weighted Assets (RWAs): Only 23% of the total measures affect RWAs, indicating that the focus remains largely on capital replenishment rather than risk reduction.
• Lending Impact: The EBA concluded that the proposed measures are unlikely to have a significant negative impact on lending to the real economy, with the impact of actions reducing lending expected to be less than 1% of the total amount.
• Exclusions: Three banks (Österreichische Volksbank AG, Dexia, and WestLB AG) are excluded from the assessment due to their significant restructuring processes. Additionally, the shortfall related to Greek banks is treated separately under the EU/IMF assistance programme.

Next Steps

• Viability Assessment: The Board of Supervisors has not yet assessed the viability of the individual capital plans. This will be done by National Authorities in close cooperation with the EBA and other relevant authorities.
• In-depth Analysis: The analysis will focus on:
  • The credibility of forecasts for retained earnings.
  • The effectiveness of the process for approving new advanced models.
  • The reliability of assumptions underlying asset disposal plans and their geographical impact.
• Potential Revisions: Capital plans may be challenged and revised if assumptions appear overly optimistic. In such cases, backup plans will be requested.
• Monitoring and Guidance: National Authorities will provide clear guidance on capital plans in early March. The EBA Board will continue to monitor the viability of these plans leading up to the June 2012 deadline.
• Macro-prudential Considerations: The EBA will liaise with the European Systemic Risk Board (ESRB) to consider macro-prudential implications and the aggregate impact on the real economy.
• Sovereign Buffer Monitoring: The EBA, in collaboration with the ESRB, will continue to monitor the need for the sovereign buffer.

Background

• The EBA's Recommendation, adopted on 8 December 2011, is part of a broader European initiative to restore market stability and confidence. This initiative was agreed upon by the European Council on 26 October 2011 and confirmed by the ECOFIN Council on 30 November 2011.
• The Recommendation requires banks to build an exceptional and temporary capital buffer against sovereign debt exposures, reflecting market prices as of 30 September 2011. It also mandates that the Core Tier 1 capital ratio reaches 9% by the end of June 2012.
• Banks were required to submit their capital plans by 20 January 2012, and the EBA Board of Supervisors reviewed these plans on 8 and 9 February 2012.

Key Information

• Total Capital Shortfall: EUR78bn, excluding the three restructuring banks and Greek banks.
• Submission Deadline: 20 January 2012.
• Review Period: 8–9 February 2012.
• Next Review: The EBA will conduct its next EU-wide stress test in 2013.
• Collaboration: The EBA will work closely with National Authorities and the ESRB to ensure the effectiveness and macro-prudential soundness of the capital plans.