Banks

Europe’s banks back under the microscope

Europe Bankenaufseher look again this year deep in the books of the financial institutions. You want to find out whether the financial institutions are in fact sufficient for a further economic crisis are well prepared.

In a new stress test, the European banking authority (EBA) 51 institutes under the microscope. In Parallel, examines the European Central Bank (ECB) in a stripped down variant for another 60 banks from the Euro zone. To examine whether banks have enough capital buffers to a crash of the economy and falling real estate prices to cope with.

The results of the EBA-Tests are designed early in the third quarter will be published, as authority on Wednesday in London announced. The ECB wants to their results, however, are not officially proclaimed, and only internally for the Monitoring of the banks.

And now, when the car breaks?

The Bankenaufseher search for possible Contaminated sites or Kapitallöcher in the balance sheets of the banks. In the stress test need to the banks to prove that they, even under adverse circumstances, have enough money to make your business continue.

On consumer could transfer the Test look like this: Rich revenues, savings, or insurance coverage even if the car and the washing machine at the same time to break down, the employer declares bankruptcy and you are only in the next year for a new Job?

Without the setting of capital ratios

In the EBA Test, it should in contrast to previous stress tests not “Durchfaller”. The scenarios, on the Basis of the business figures at the end of 2015 that will play, to see the massive economic shocks in Europe: For this year and next to 1.2 percent, or 1.3 percent, shrinking the economy, for 2018 only 0.7 percent growth. Also for the USA and Japan, as well as for emerging markets such as China, Brazil and Turkey are violent break-ins played out.

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What is new is that so-called Verhaltensrisiken in the Stress scenario are received. So are sanctions meant that banks have to pay because, for example, dealer against regulations, as in the case of Libor Zinsmanipulationen, what the financial institutions are, in retrospect, billion cost. This could, in particular, the Deutsche Bank meeting, with many legal Legacy herumschlägt. However, will the results of the stress tests is not to see what punishments a Bank count, said EBA-expert in risk Mario Quagliariello.

As more risks are falling energy prices and negative interest rates into the crisis scenario included. The consequences of a Brexit, so a possible exit of the UK from the EU, called Quagliariello, however, is not. The overseers do without, this Time, requirements of capital ratios that banks must meet. Instead, the results in the annual assessment of business models and risks of the Institute, are included.

Of damage learned

Such investigations were referred to the recent financial crisis have been introduced. You should risks in the Bank balance sheets disclose and thus greater confidence in the stability of the financial sector.

The ECB since November 2014 for banking supervision in the Euro area in charge and controls the 129 largest institutions directly. Of the current Tests, but only about a hundred part. The rest were recently x-rayed, as the Greek financial institutions or are subsidiaries. The EBA is the Supreme banking authority, the European Union and thus also for banks in Non-Euro countries such as the United Kingdom is responsible.

dk/rb (dpa)