Finland Times

 

Director General of Financial Supervision Authority,Anneli Tuominen and Jyri Helenius,Head of Department, Prudential Supervision at Financial Supervison Authority during a press conference where ECB's banks comprehensive assessment annoucement was made on 26 October 2014. Photo Lehtikuva.

Three Finnish banks-OP Pohjola Group, Nordea and Danske- have all maintained strong positions in the comprehensive assessment of 130 largest banks in the European Union.

 

The European Central Bank on Sunday published the results for risk assessment, asset quality review and stress test for the 130 banks in the euro area as of 31 December 2013.

 

The OP Pohjola Group's capital adequacy remained on a solid basis and clearly above the test's minimum requirement. The Group's Common Equity Tier 1 (CET1) would decrease to 12.0 %, with the minimum requirement being 5.5%, said a release from Group.

 

File picture of OP Pohjola Bank. Photo Lehtikuva.

Nordea posted a CET1 ratio of 10.4% which is over the minimum threshold of 5.5%.

 

Danske Bank’s CET1 ratio was 13.4% percent which is also over the minimum threshold.

 

File picture of Nordea Bank. Photo Lehtikuva.

According to the European Central Bank, banks were required to maintain a minimum CET1 ratio of 8%, and under adverse scenario, they were required to maintain a minimum CET1 ratio of 5.5 %.

 

“The capital adequacy of all the Finnish banks involved clearly exceeded the capital ratio thresholds defined in the assessment.  In the adverse scenario, the Finnish banks’ Common Equity Tier 1 capital ratio remained higher than the average for the assessed banks and the aggregate adjustment to capital ratios was on average level. The result will further enhance consumer confidence in the Finnish banking sector,” said Anneli Tuominen, Director General of the Financial Supervisory Authority in a release.

 

File picture of Danske Bank. Photo Lehtikuva.

“The comprehensive assessment—which consisted of the asset quality review (AQR) and a forward-looking stress test of the banks—found a capital shortfall of €25 billion at 25 banks. Twelve of the 25 banks have already covered their capital shortfall by increasing their capital by €15 billion in 2014,” said a release from the European Central Bank.