The European Central Bank (ECB) said Sunday that the bulk of Europe’s biggest banks would be able to survive a financial crisis. The assessment was intended to remove a cloud of mistrust impeding lending in countries like Greece and Italy to avoid a relapse into recession for a third time since the global financial crisis started six years ago.
Only 13 out of the 130 big eurozone banks under review were found to have problems following the in-depth review. These weak banks – that include two Greek banks – need to cushion themselves but it is unlikely that they would be put out of business by the review’s results.
The ECB performed stress tests on the four systematic credit institutions of Greece and found that Alpha and Piraeus completed the exercise successfully however Eurobank and the National Bank of Greece need to cover 291 million euros in total.
“Eurobank has practically no shortfall and National Bank of Greece has no shortfall,” said the ECB statement on Sunday.
Banks that need to raise capital
Austria: Oesterreichische Volksbanken
Belgium: AXA Bank Europe, Dexia
Cyprus: Hellenic Bank Public Company
Greece: Eurobank Ergasias, National Bank of Greece
Republic of Ireland: Permanent TSB
Italy: Banca Carige, Monte dei Paschi, Banca Popolare di Milano, Banca Popolare di Vicenza
Portugal: Banco Comercial Portugues
Slovenia: Nova Kreditna Banka Maribor, Nova Ljubljanska Banka
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