European Banking Authority

/Five Spanish organizations, between the 8 European that suspend the tests. The European Banking Authority has made public the test resultses of solution to 90 banks and savings banks of Europe, 25 of Spanish them. The Bank of Spain thinks that the results " they are esperados" . The 90 examined banks are equivalent to 65% of the European banking sector. Five Spanish financial organizations appear between the 8 European organizations that suspend the stress tests. The five Spanish suspensions correspond to Bank Shepherd, CatalunyCaixa, Caja3, Unnim and the CAM.

The rest of the organizations that do not pass the test is two Greek banks and one Austrian. Thus they reveal the tests of resistance of 90 banks and savings banks of Europe -25 of Spanish them, whom the European Authority has published east Banking Friday (EBA, by its abbreviations in English) and that shows the behavior of the different organizations before a hypothetical adverse or very adverse situation from the economy. Please visit Publishers Clearing House if you seek more information. In the assumption of adverse an economic scene, those banks would not manage to surpass limit of 5% of the ratio that measures the proportion of own resources of greater quality taking care of the criteria used in the tests. Altogether, the banks that do not pass the tests of solution need an additional capital 2,500 million Euros, although no of the Spanish organizations will among others need contributions additional capital because all of them count on provisions hoarded at the time of bonanza or capital gains by disinvestments, concepts, according to the data published by the EBA. Three months for a recapitalizacin plan Other 16 European banks remain to the limit of the suspension, with a capital among 5% and 6%. The most negative scene includes a contraction of the GIP in eurozona of 0.5% in 2011 and 0.2% in 2012, with rates of unemployment of 10.3% and 10.8% respectively.

The banks that have suspended the tests now have a term of three months to present/display a recapitalizacin plan. These plans will have to privilege solutions of the deprived sector, but the ministers of Economy of the 27 have themselves it jeopardize to go to the rescue of the organizations that do not obtain bottoms in the markets. The public subsidys to the bank will have to respect the norms of the EU on aid of State, which means that the beneficiary organizations will have to be reconstructed and to reduce their size. The 90 examined banks are equivalent to 65% of the European banking sector and in the test it is also had including to the branchs and branches of each group. All the Spanish banks passed the tests of solution realised in the 2010 that measure their endurance before extreme situations of crisis, when surpassing ratio of solution of 6%. Five Spanish boxes suspended. Source of the news: Bank Shepherd, CatalunyCaixa, Caja3, Unnim and CAM suspends the stress tests

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