ES mastu atliekamas bankų testavimas nepalankiausiomis sąlygomis: rezultatų vertinimas ; EU-wide banks stress testing: evaluation of results

Banks are integral part of our financial system and no matter the situation they should be always to offer their services. However, when 2008 crisis hit it appeared that financial sector was hugely vulnerable to financial shocks. It took out two big American banks and others had to be bailed out by their governments or other financial institutions. Since then whole world made an effort to make counter measures to prevent this happening again. One of the counter measures came in the form of bank stress testing. Since the financial crisis there were four EU- wide stress test completed and the latest is scheduled to happen in 2016. The main objective of this paper is to summarizes the main results of 2014 EU- wide stress test exercise. It describes main methodological aspects such as capital definition, various risks exposure, static and dynamic capital assumptions as well as various institutions roles which took part in supervising this exercise. The mains results are presented and illustrated on whole EU level and also in some cases on a country level too. Mainly results focus on Common equity tier 1 capital ratio and it‘s general change in terms of billion Euros. Also impact is measured by risk type which includes: credit risk, cost of funding and net interest income risk, market risk and sovereign risk. So, there were two scenarios used: baseline and adverse scenario. The weighted average Common Equity Tier 1 Capital ratio as of end 2013 was 11.5%. Common Equity Tier 1 ratio falls by approximately 260bps. This corresponds to a total capital depletion of EUR 261BN over the three years of the exercise including the impact of total risk exposure amount (EUR 67BN), after which the aggregate EU Common Equity Tier 1 ratio is at 8.5% (7.6% on a fully implemented CRR/CRD IV basis). The main drivers for this impact are credit losses (-440bps impact on CET1 Capital ratio) and an increase in total risk exposure amount (risk weighted assets) with an impact of -110bps on the CET1 Capital ratio. 24 participating banks fall below the defined thresholds leading to an aggregate maximum capital shortfall of EUR 24.6BN. The additional capital raised in 2014 by banks with a shortfall reduces the capital needs for those banks to EUR 9.5BN and the number of banks with a shortfall to 14. By the given data, results show that majority of banks are in a good position to cope with financial shocks. However there are some banks which are balancing on the edge of failure.