The ECB's comprehensive assessment of banks
Press Release of the NBS and MF SR
The European Central Bank (ECB) has today (26.10.2014) published the results of its comprehensive assessment of banks in the euro area. The assessment consisted of an extensive asset quality review (AQR) and stress tests of banks in participating Member States. A total of 130 banks were examined, including subsidiaries of non-euro area banks.
The comprehensive assessment applied a uniform methodology and was conducted in cooperation with the national competent authorities of the participating euro area countries and Lithuania. The AQR examined banks’ exposures, including the adequacy of asset and collateral valuation and related provisions. The stress tests examined the resilience of banks over a three year time horizon (2014-2016) under a baseline scenario and an adverse scenario. The comprehensive assessment found that 25 of the reviewed banks had a capital shortfall as on 31 December 2013, amounting to almost €25 billion in total. Several of these banks have already adopted measures in 2014 to remedy the situation.
In Slovakia, the comprehensive assessment was carried out in three banks: Slovenská sporiteľňa, Všeobecná úverová banka, and Tatrabanka. The results confirmed that each of these banks has a CET1 ratio substantially higher than the 8% minimum requirement. None of the three banks reviewed was found to have a capital shortfall, and the comprehensive assessment confirmed their robust capital position and long-term stability. Therefore these Slovak banks are not required to submit capital-strengthening plans, nor is the Government required to adopt any measures to bolster their capital positions.
In addition, all parent undertakings of the reviewed Slovak banks achieved successful results in the comprehensive assessment.
Responding to today’s announcement, the Governor of Národná banka Slovenska, Jozef Makúch, said: “The results of the ECB’s comprehensive assessment confirm that Slovak banks are stable, reliable, and functioning soundly. Compared with other European banks, they achieved better results in a majority of indicators.”
In his comments on the results, the Slovak Finance Minister, Peter Kažimír, said: “This outcome is proof that Slovak banks are in excellent condition despite external risks and economic difficulties in the euro area. The banks are sound and have substantial buffers against potential adverse shocks.”
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