None of the four Greek systemic banks, National, Piraeus, Alpha and Eurobank is found to need capital infusion as they all have a capital adequacy index ratios core Tier 1 over 5.5% under the adverse scenario.

According to the market estimates, Alpha Bank is ranked higher with a 6.5% ratio following by Piraeus with 6.1%. More specifically, according to an announcement released by the Bank of Greece, under the static balance sheet assumption, Alpha Bank S.A., has no capital shortfall, while Piraeus Bank S.A. has a capital shortfall that is more than covered by the capital raising performed in 2014 (net of repayment of preference shares).

Under the static balance sheet assumption, National Bank of Greece S.A. and Eurobank Ergasias S.A. have a capital shortfall that is not fully covered by the share capital increases performed in 2014. However, as stated in the aggregate report on the Comprehensive Assessment: “[these] banks … will have dynamic balance sheet projections (which have been performed alongside the static balance sheet assessment as restructuring plans were agreed with DG-COMP after 1 January 2014) taken into account by the JSTs in determining their final capital requirements. Under the dynamic balance sheet assumption, one bank (National Bank of Greece S.A.) has no shortfall and one bank (Eurobank Ergasias S.A.) has practically no shortfall”.

The aim of the 2014 EU-wide stress test is to assess the resilience of EU banks to adverse economic developments, so as to understand remaining vulnerabilities, complete the repair of the EU banking sector and increase confidence.

The official announcement of the stress tests restults by the Vice President of the ECB started at 13:00 on Sunday in Frankfurt.

LEARN ALL ABOUT THE CAPITAL ADEQUACY RATIOS AND ANALYSIS OF STRESS TESTS HERE