EU stress tests published July 23rd

 

Spain had more financial institutions requiring 'stress tests' than any other in the EU with a total of 27, followed by Germany with 14, and Greece, with six. The tests also include five Italian institutions, four French, four British, four Portuguese, four Sweedish and four from the Netherlands – all in all, a total of 91 Institutions.

The results of 8 of Spain's banks and 19 "cajas" is due to be published on 23rd July 2010.

The committee of European Banking Supervisors state that the stress test has been extended beyond the original estimate to include not only the main European banks, but also some of the national "key" credit banks in Europe, such as Spanish savings banks, and German regional banks.

The results will report on the stability of Banco Santander; BBVA; Banco Popular; Banco Sabadell; Bankinter; Banco Pastor; Banco Guipuzcoano and Banca March.

CEBS has also extended the SIP tests to Bancaja,:Caja Madrid; La Caixa; CAM; Caixa d'Estalvis de Catalunya, Tarragona i Manresa and also to the institions currently undergoing merger talks - Caixa Galicia and Caixanova; Mare Nostrum; Caja Duero; Caja Spain; Banca Civic Ibercaja; Unicaja; Caja Sol; BBK; UNNIM; Kutxa; CAI; Savings Bank of Córdoba; Caja de Ahorros de Vitoria and Alava; Fund Ontinyent Savings and Colony.

The Institutions tested were selected by being listed in decending order by assets, up to at least 50% of each member state's banking sector. As such, the 91 institutions selected represent 65% of the banking sector of the entire European Union.

CEBS maintain that the aim of these tests is to assess the resilience of the banking sector in the European Union and the ability of banks to absorb the potential problems in credit and market risks, including sovereign risk, and assess the current reliance on public support measures.