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German Bank Helaba 'to Pull Out Of Stress Tests'

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http://www.bbc.co.uk/news/business-14148180

German bank Helaba says it expects to pull out of the EU's bank stress tests this week to avoid public failure.

Helaba said it would have passed the test if regulators counted a debt-equity hybrid, called "silent participation", as a capital reserve.

It said the European Banking Authority (EBA), which runs the tests, had said it would accept silent participation but then changed its mind.

Its withdrawal will raise concerns about the credibility of the tests.

The tests aim to ensure banks have sufficient capital to withstand difficult economic scenarios.

Helaba said that its core tier one capital ratio calculated in the test's harshest scenario was 6.8%, taking into account the silent participation.

That was above the 5% minimum threshold determined by the EBA.

The bank said it was not allowing the EBA to publish its data and therefore expected to be excluded from the tests.

I wonder what it's capital ration in the harshest test is when the silent participation isn't taken into account.

Why shouldn't silent participation be included in the capital ratios is it a subjective figure?

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Its withdrawal will raise concerns about the credibility of the tests.

Surely they mean the credibility of the bank...

Edited by Tiger Woods?

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Odd that employers wont accept a reference for me from my future employers.

Bankers seem to expect that security they dont yet have is acceptable for current debt.

Mr Bovey Knows otherwise.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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