Stress test: 7% hurdle puts spotlight on German banks

Author: Ben Bschor | Published: 28 Oct 2014

Fourteen additional banks, including six from Germany, would have failed the stress test’s adverse scenario had the EBA used the minimum CET1 requirements banks must meet once capital buffers are fully applied.

According to the data published by the ECB and EBA on October 26, 25 out of 130 banks failed to meet at least one of the three different thresholds: the minimum 8% CET1 ratio for the AQR and the baseline scenario and 5.5% for the adverse scenario.

When taking into account capital measures taken in 2014 - that is, after the December 31 2013...