Credible Are The Results Of Stress Test?

The Spanish bank has sufficient capacity to meet future scenarios of extreme economic downturn.

Spanish Banks and should not be reinforced with more capital under stress test last performed together in the financial sector across Europe.

The results published yesterday by the European Banking Authority (EBA, for its acronym in English), parallel to the various national supervisors, shows eight banks in a precarious situation. There are five Spanish institutions: CAM, Pastor, Box 3, Unnim and CatalunyaCaixa. To achieve the required minimum solvency, capital 5% of maximum in an adverse environment, these five states require theoretically 1.564 million.

However, in practice it will be necessary to increase capital. This gap or is already in balance (in the form of generic, convertible bonds that were sold and capital gains from divestments) or is in process of doing so under the process of strengthening the sector that the government and the Bank of Spain promoted in February.

Requirements amounting to 15.152 million of new capital, that September 30 should be on the table by the private road, preferably. If not, what will the state.

The possibility of nationalization of the entities and consequent loss of political rights, is precipitating the recent IPOs of Civic Banking Bankia or in the pursuit of private investors.

It may be the result of chance, but those entities that marketed to a greater extent known swaps, or contract interest rate swap are those who do worse. It will be clear chance ... or reproach?

Furthermore, while some analysts believe that the tests have been disappointing and deficient, and even warn that "is a lost opportunity for the EU Member States to encourage banks to increase their assets because Basel III ratios remain low, "Kian Abouhossein, JP Morgan, others believe that" in general, have been quite positive "but" will not calm investors at the moment "(Link Securities).

The supervisors lens is placed especially on so-called systemic banks, ie those old enough or too linkages with the rest whose failure would jeopardize the rest of the system, but the scope of review varies greatly from country to country other.