German banks approved a test of the European Union stress, according to an official statement on Friday, with the exception of Hypo Real Estate, property and specialist in municipal finance and state-owned.
"Human rights education is the only German bank to fall short of the six percent level of capital ratio in the most severe stress scenario," aq joint statement issued by the German central bank and financial sector fund stabilization Soffin said.
key indicator of the test, Tier 1 capital are central bank reserves to cover the risk of depositors demanding their money.
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Tests required banks to maintain a ratio of at least six percent of Tier 1 capital to total assets as loans or investments in government bonds, although affected by disturbances such as a severe recession, with widespread defaults.
"Measured by this criterion, the German banking system has proved to be robust and proved their resilience, even in extremely pessimistic," the statement said.
A total of 14 German banks were reviewed, the second largest contingent after 27 in Spain.
Human rights education with regional headquarters in Munich and owned Landesbanken is believed that the greatest risks faced by banks in central Europe's largest economy, as investors worried that the problems of the giant Deutsche Bank Commerzbank's number two.
Even Postbank, which has the country's largest retail network and on which some had put a question mark, passed with a ratio of 6.6 percent in the worst case, an adverse situation call which was added the shock of a crisis in the sovereign debt.
Human rights education received a failing grade of 5.3 percent in the adverse scenario, which means Germany would fall into a deep recession, and 4.7 percent in the worst case.
But measures are underway to restructure the HR, which was nationalized last year after a long flirtation with bankruptcy.
The lender has said it needs another two million euros (2600 million U.S. dollars) in fresh capital, which can be obtained from its new owner, who is Soffin.
The fund had € 255 000 000 000 in loan guarantees and more than 50 million euros in capital to help foot the German banks could fall short in testing.
Human rights education has already received € 7850000000 Soffin cash with € 103 500 000 000 in loan guarantees.
In late March, the lender had about 39 million euros in exposure to sovereign debt of countries in the euro weaker, such as Greece, Ireland, Italy, Portugal and Spain, whose bonds have been under pressure.
However, the statement emphasized that plans are in place for the transfer of € 210 000 000 000 in "risk positions" a "ennvironment deconsolidated" - also known as a "bad bank" - a move that dress the windows of human rights education very well.
"With that, an important step to ensure the continued viability of Hypo Real Estate Holding have been taken," the statement said.
Stress tests of 91 European banks, which account for 65 percent of the continent's banking sector were aimed at restoring investor confidence in the same way the U.S. did similar tests in early 2009.
Much will now depend on market reaction to test the criteria, not explicitly allow the possibility of default by a country in the euro area weakened as Greece.
The tests, conducted by the London-based European Committee of Banking Supervisors, however, provide investors with information necessary to calculate a bank's total exposure to sovereign debt themselves.
But as an economist at Goldman Sachs Kujocharov Nick said, "if banks also spend a lot and do so with a comfortable margin, the test can be judged as too easy."
"Human rights education is the only German bank to fall short of the six percent level of capital ratio in the most severe stress scenario," aq joint statement issued by the German central bank and financial sector fund stabilization Soffin said.
key indicator of the test, Tier 1 capital are central bank reserves to cover the risk of depositors demanding their money.
Advertising: The story continues below
Tests required banks to maintain a ratio of at least six percent of Tier 1 capital to total assets as loans or investments in government bonds, although affected by disturbances such as a severe recession, with widespread defaults.
"Measured by this criterion, the German banking system has proved to be robust and proved their resilience, even in extremely pessimistic," the statement said.
A total of 14 German banks were reviewed, the second largest contingent after 27 in Spain.
Human rights education with regional headquarters in Munich and owned Landesbanken is believed that the greatest risks faced by banks in central Europe's largest economy, as investors worried that the problems of the giant Deutsche Bank Commerzbank's number two.
Even Postbank, which has the country's largest retail network and on which some had put a question mark, passed with a ratio of 6.6 percent in the worst case, an adverse situation call which was added the shock of a crisis in the sovereign debt.
Human rights education received a failing grade of 5.3 percent in the adverse scenario, which means Germany would fall into a deep recession, and 4.7 percent in the worst case.
But measures are underway to restructure the HR, which was nationalized last year after a long flirtation with bankruptcy.
The lender has said it needs another two million euros (2600 million U.S. dollars) in fresh capital, which can be obtained from its new owner, who is Soffin.
The fund had € 255 000 000 000 in loan guarantees and more than 50 million euros in capital to help foot the German banks could fall short in testing.
Human rights education has already received € 7850000000 Soffin cash with € 103 500 000 000 in loan guarantees.
In late March, the lender had about 39 million euros in exposure to sovereign debt of countries in the euro weaker, such as Greece, Ireland, Italy, Portugal and Spain, whose bonds have been under pressure.
However, the statement emphasized that plans are in place for the transfer of € 210 000 000 000 in "risk positions" a "ennvironment deconsolidated" - also known as a "bad bank" - a move that dress the windows of human rights education very well.
"With that, an important step to ensure the continued viability of Hypo Real Estate Holding have been taken," the statement said.
Stress tests of 91 European banks, which account for 65 percent of the continent's banking sector were aimed at restoring investor confidence in the same way the U.S. did similar tests in early 2009.
Much will now depend on market reaction to test the criteria, not explicitly allow the possibility of default by a country in the euro area weakened as Greece.
The tests, conducted by the London-based European Committee of Banking Supervisors, however, provide investors with information necessary to calculate a bank's total exposure to sovereign debt themselves.
But as an economist at Goldman Sachs Kujocharov Nick said, "if banks also spend a lot and do so with a comfortable margin, the test can be judged as too easy."
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