Nov
15
ECB Finds $1.87 Billion Capital Gap in Stress Test of Nine Banks
By-
Shortfall of 1.4 billion euros found at Portugal’s Novo Banco
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ECB says other banks have already raised necessary funds
The European Central Bank found capital gaps totaling 1.74 billion euros ($1.87 billion) among nine lenders it tested, with the biggest hole at Portugal’s Novo Banco SA.
“Shortfalls amount to 1.74 billion euros resulting from CET1 ratios falling below the threshold of 5.5 percent in the adverse stress-test scenario, after including impact of asset quality review,” the ECB said in a statement on its website on Saturday. “Banks will be required to address remaining shortfalls in a timely manner by issuing capital instruments or undertaking other eligible measures to restore their capital positions to the required levels.”…
ECB Finds $1.87 Billion Capital Gap in Stress Test of Nine Banks
