EU bank stress test
Bank stress tests have been carried out regularly in the European Union since 2009 . These stress tests apply to all relevant institutions in the eurozone countries . These tests are carried out by the European Banking Authority (EBA). The 120 largest banks in the euro zone have been jointly audited by the EBA and the European Central Bank (ECB) since 2014 . The background to this is the creation of the banking union in the EU, which aims to achieve uniform and targeted banking supervision in Europe after the national supervisory authorities failed before and during the financial and euro crisis. Stress tests have so far been carried out in 2009, 2010, 2011, 2014 and 2016.
procedure
In these EU-wide bank stress tests, the EBA simulates a so-called crisis scenario based on the bank balance sheets. This is based on an economic crisis, a slump in the financial market, currency turbulence and a higher default rate for loans. It starts with examining the risks in the bank's balance sheet and the outstanding loans. Then a basic scenario is simulated; no crisis is taken as a basis here. The actual crisis scenario is only carried out after this test. The results are then jointly evaluated by the EBA and the ECB.
A bank passes this stress test (as of 2016) if it still has a core equity of 9% according to the base scenario and 5.5% after a crisis; these values are relatively high for a bank, since banks are a special type of company, as they are primarily financed on the basis of outside capital.
Result of the 2016 stress test
In 2016, the EBA and the ECB carried out another stress test in which there was both a baseline scenario and a crisis scenario with an underlying economic crisis. Banks from EU countries that are not part of the monetary union were also taken into account in this test. The following table shows the results of all participating banks:
| Bank | EU member state | Equity base scenario |
Equity crisis scenario |
|---|---|---|---|
| Erste Group Bank | Austria | 13.85% | 8.19% |
| Raiffeisen-Landesbank | Austria | 12.36% | 6.14% |
| Belfius Bank | Belgium | 17.60% | 11.41% |
| KBC Group | Belgium | 16.18% | 11.27% |
| Bavarian Landesbank | Germany | 12.41% | 8.34% |
| Commerzbank | Germany | 13.13% | 7.42% |
| DekaBank | Germany | 14.17% | 9.53% |
| Deutsche Bank | Germany | 12.08% | 7.80% |
| Landesbank Baden-Württemberg | Germany | 15.90% | 9.68% |
| Landesbank Hessen-Thuringia | Germany | 14.42% | 10.10% |
| North German Landesbank | Germany | 13.21% | 8.67% |
| NRW Bank | Germany | 39.44% | 35.40% |
| Volkswagen Financial Services | Germany | 12.90% | 9.56% |
| Danske Bank | Denmark | 17.66% | 14.02% |
| Jyske Bank | Denmark | 19.85% | 14.00% |
| Nykredit | Denmark | 22.47% | 14.19% |
| BBVA | Spain | 12.03% | 8.29% |
| Banco de Sabadell | Spain | 12.96% | 8.19% |
| Banco Popular Espancol | Spain | 13.45% | 7.01% |
| Banco Santander | Spain | 13.24% | 8.69% |
| BFA | Spain | 15.09% | 10.64% |
| Criteria Caixa | Spain | 11.67% | 8.97% |
| OP Financial Group | Finland | 21.24% | 14.90% |
| BNP Paribas | France | 12.13% | 8.59% |
| Groupe BPCE | France | 14.52% | 9.73% |
| Credit Mutuel | France | 16.78% | 13.54% |
| Crédit Agricole | France | 14.81% | 10.49% |
| La Banque Postal | France | 14.76% | 9.72% |
| Société Générale | France | 11.94% | 8.03% |
| OTP bank | Hungary | 14.56% | 9.22% |
| Allied Irish Banks | Ireland | 16.97% | 7.39% |
| Bank of Ireland | Ireland | 16.12% | 7.69% |
| Monte dei Paschi di Siena | Italy | 12.04% | −2.23% |
| Banco Popolare | Italy | 14.61% | 9.05% |
| Intesa Sanpaolo | Italy | 12.83% | 10.24% |
| Unicredit | Italy | 11.57% | 7.12% |
| Unione Di Banche Italiane | Italy | 13.01% | 8.85% |
| ABN Amro | Netherlands | 16.21% | 9.53% |
| Rabobank | Netherlands | 13.34% | 8.11% |
| ING Group | Netherlands | 12.52% | 9.00% |