24/10/2014
Stress tests: No German banks will be required to raise funds
p { margin-bottom: 0.1in; line-height: 120%; } None of the 24 German banks which have undergone stress testing by the European Central Bank (ECB) will be required to raise capital in the six to nine months following the tests, the economic newspaper Handelsblatt reports, without citing sources. The newspaper states that HSH Nordbank, which has long been considered one of the most exposed companies in the country, ultimately came out on the “right side” of stress tests by the EBC it underwent. Reuters reported on Wednesday that HSH was expected to pass the tests. In Italy, Bloomberg reports that Banca Monte dei Pache di Siena and Banca Carige will need to fill gaps in their owners’ equity. The ECB is expected to conclude that the two groups do not have sufficient capital to survive a “stress” scenario and that they have not rased enough funds this year to fill the gap, the agency adds, citing a source which prefers to remain anonymous. Monte dei Paschi di Siena and Banca Carige declined to comment on the reportts, and that Bank of Italy states that it has no comment.
