Full scope of Europe’s bank stress tests revealed - News and Current Events | futures.io
futures.io futures trading

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Full scope of Europe’s bank stress tests revealed
Started:August 20th, 2014 (09:33 PM) by kbit Views / Replies:63 / 0
Last Reply:August 20th, 2014 (09:33 PM) Attachments:0

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Full scope of Europe’s bank stress tests revealed

Old August 20th, 2014, 09:33 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

Full scope of Europe’s bank stress tests revealed

European regulators unveiled more details of the hotly-anticipated banking stress tests on Wednesday, in an effort to strengthen the region's shaky financial sector.

In its final templates of the stress tests, the European Union's (EU) European Banking Authority (EBA) revealed what information would be published about each bank.

The region's 124 most important banks are undergoing an assessment of their risky assets designed to determine how well they would cope with future market shocks.

Banks' composition of capital, risk weighted assets and profit and loss figures will be disclosed, along with their exposure to sovereigns, credit risk and securitization, the EBA said. Up to 12,000 data points will be published about each bank.

It also revealed that, for the first time, what's known as a bank's "fully-loaded" common equity tier 1 capital ratio would be published.

The common equity tier 1 capital ratio measures a lender's core equity capital against its risk-weighted assets and is a key measure of a bank's ability to withstand economic shocks. This "fully-loaded" ratio is designed to provide a comparable measure across the EU, to avoid reporting discrepancies in different countries.

Europe's banks have been at the heart of the euro zone's financial crisis, after taking on too much debt which turned toxic when borrowers struggled with their repayments. A number of European governments were forced to step in and rescue their struggling institutions – deemed in many cases "too big to fail" – which in turn hit the solvency of these already debt-laden countries.

The stress tests, which will be finalized later this year, form a crucial part of the EU's efforts to prevent this from happening again.

"By disclosing data in a consistent and comparable way across the Single Market, the EBA will bring greater transparency to EU banks, contributing to enhanced market discipline of the entire EU banking sector," the EBA said in a press release.

It added that its overview – as a result of the data from the stress tests – means it will be able to "promptly flag any issues or statistical differences to national supervisors, whilst also allowing public disclosure of all data on EU banks."

These additional details of the stress tests come just weeks after Portugal was forced to stump up close to $5 billion euros to save its lender Banco Espirito Santo.

Troubles at the bank – which is Portugal's largest listed by assets – saw equity markets slump around the world for a short period of time in June, further emphasizing the global importance of Europe's financial system.

The EBA is expected to publish the final results of this year's EU-wide stress test in October 2014.

Full scope of Europe?s bank stress tests revealed

Reply With Quote


futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Full scope of Europe’s bank stress tests revealed

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Citigroup Might Be Surprise Winner in Bank Stress Tests Quick Summary News and Current Events 0 March 12th, 2012 07:40 PM
Could Bank Stress Tests Push The US Back Into a Recession? Quick Summary News and Current Events 0 November 25th, 2011 03:50 PM
Will Europe's Stress Tests Be a 'Missed Opportunity?' Quick Summary News and Current Events 0 July 14th, 2011 04:50 AM
Irish Bank Stress Tests May Not Reveal All Quick Summary News and Current Events 0 March 31st, 2011 03:10 AM
New EU Bank Stress Tests More Like the US: Lagarde Quick Summary News and Current Events 0 January 24th, 2011 03:10 AM

All times are GMT -4. The time now is 12:04 PM.

Copyright © 2016 by futures.io. All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-28 in 0.07 seconds with 19 queries on phoenix via your IP