Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
2nd October 2012
Spanish Bank stress test detail
The independently calculated stress test of Spanish Banks concluded that under the adverse scenario banks would require €59.3bn (£47.3bn $76.7bn ¥5,948bn Y481.9bn). When a number of mergers in progress are completed this figure drops to €53.7bn (See table below).
The independent stress test was carried out by Oliver Wyman. Markets were relieved as the figure was in line with recent estimates and lower than had been feared might be the case earlier in the year. Before focusing on the problem areas it is worth noting that seven banking groups have a combined surplus €45.8bn under the adverse scenario. The adverse scenario is in some respects extreme, however if the Spanish economy cannot be turned around to show some growth, or at the very least a lower rate of contraction then the problems for Spanish banks could continue to multiply even beyond this point.
Banco Popular announced that its board had approved a capital increase of €2.5bn- See separate article [Popular believes can boost profits stay independent ].
Banco de Valencia and Catalunyabank were known beforehand to require more capital. The amount of capital required by Catalunyabank may surprise some however. Bankia, accounts for 46% of the sector's capital needs under the central bank's table of requirements following mergers.
The failure of the central bank and regulators to realise the extent of Bankia's problems in advance was the main item that shook investors and other governments faith in the Spanish banking system. Bankia issued a combative statement apparently arguing the methodology believing it would have to borrow no more than €19bn - see separate article [Bankia to seek further 19bn Euro state aid ].
Spanish Banks Baseline Adverse
€m €m
MEETING STRESS TEST
Grupo Santander + 19,181 + 25,297
BBVA + 10,945 + 11,183
Caixabank+Cívica + 9,421 + 5,720
Kutxabank + 3,132 + 2,188
Sabadell+CAM + 3,321 + 915
Bankinter + 393 + 399
Unicaja+CEISS + 1,300 + 128
____________________
Surplus + 47,693 + 45,830
NOT MEETING STRESS TEST
Ibercaja+Caja3+Liberbank + 492 - 2,108
BMN - 368 - 2,208
Popular + 677 - 3,223
Banco de Valencia - 1,846 - 3,462
NCG Banco - 3,966 - 7,176
Catalunyabank - 6,488 - 10,825
Bankia-BFA - 13,230 - 24,743
____________________
- 24,731 - 53,745
Notes:
1 + figure represents surplus capital. - figure represents shortfall
2 This table shows the calculation after a number of mergers in process are completed. The adverse shortfall under the current structure is €59.3bn
3 €1bn=£798m - $1,293m - ¥100.3bn - Y8,126m
4 Source for table is Banco de España