Financial Institutions

November 7, 2015

News

Comments Off on Financial Institutions


Five financial institutions Spaniards, two Greek and one Austrian suspended made this Friday July 15 at the European banking stress tests. The Bank of Spain has indicated that none of the pending entities will need additional capital injections. Spain has put before the stress test at 95% of its financial system while countries such as Germany have made 60%; In addition, the tests to Spain have been stricter. Banca March, the Kutxa, Unicaja, BBVA, BBK and Banco Santander are Spanish institutions with higher level of resource s of maximum quality (core Tier 1 capital?) of the Spanish financial system, against the Caja de Ahorros de the Mediterraneo (CAM), Banco Pastor, Caja3, Unnim and CatalunyCaixa. A European utoridad Bank (EBA, by its acronym in English) published this Friday the results of tests of resistance of the European financial sector, which shows that eight suspended this test, five of which are Spanish, two Greeks and one Austrian. However, and despite suspend such tests, no Spanish institution need additional capital injections, as highlighted, also on Friday, the Governor of the Bank of Spain, Miguel Angel Fernandez Ordonez. The more solvent Banca March: according to the given data released by the EBA, the Spanish entity that has a higher level of resources of the highest quality (core Tier 1 capital?) Banca March, is 23.5%.

This percentage would be increased to 27.8% if provisions and other equity instruments were taken into account. The Kutxa: Banca March followed, the Kutxa featuring a 10.1% maximum quality resources that deal with a hypothetical adverse macroeconomic scenario this year and the next. Where appropriate and taking into account the provisions, its solvency would be increased up to 10.5%. Unicaja: into the next position is Unicaja, which has a percentage of solvency of 9.4% (12.2% with provisions). BBVA: BBVA has top quality resources that reach 9.2 %. In the case of the Bank President Francisco Gonzalez, provisions and other capital items would raise its solvency up to 10.2%.