Stress test: Apparently only one Italian bank „vulnerable“ Europe’s banks are finding out tonight how they have done in the recent stress test of the overseers. The focus is once again on the Italian houses, which are still sitting on a huge mountain of bad loans even ten years after the financial crisis broke out.
According to a report by „Il Sole 24 Ore“, only the Banca Carige failed in Italy. It is the only Italian bank that has been classified as „vulnerable,“ the newspaper reported today. The Institute’s hard core capital ratio fell below the 5.5 percent threshold in the simulated stress test. The European Central Bank (ECB) had tested how certain scenarios affect bank balance sheets and capital requirements.
A total of 48 banks from 15 EU countries and Norway have been examined in recent months. They had to prove with the Fitnessscheck that they did not fall over even in a severe recession and have sufficient capital buffers. Erste Group and Raiffeisen Bank International (RBI) were audited from Austria.