Sunday, July 31, 2016

Stress Test: banking examiners are satisfied – Frankfurter Neue Presse


Industry supervisors and experts consider the German banks despite streaky results in European stress test in a severe economic crisis for resistant enough. “The stress test shows that the German banks are equipped to withstand these severe shocks,” said Bundesbank President Jens Weidmann. However landed the two largest German banks, German Bank and Commerzbank, among the 51 tested thoroughly European money houses among the last ten. More capital they needed but not why, explained the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the banking supervision with the Bundesbank and the European Central Bank (ECB) is divided. “From the stress test result does not automatically result a capital requirement,” said a BaFin spokesman. Because the probability of extreme scenarios like these actually one boards, was low. Rather, the stress test is to provide additional information for the supervisors, when determining the individual capital requirements for banks.

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Proposed referendum on United Kingdom membership of the European Union ticked

July was an extremely strong month on stock markets. But the German stock index (DAX) rose by seven percent. The Dax sat well above the 10,000 point mark fixed and is thus on pros Proposed referendum on United Kingdom membership of the European Union level.


“Not completely healthy”

The EU banking authority EBA who had organized the stress test, drew a cautious conclusion: the financial institutions have strengthened their capital buffers in recent years, but had not yet been completely healthy, said EBA Chairman Andrea Enria. “There is still a lot of work to do.” The ECB, which oversees two-thirds of the participants, was satisfied. “The banking sector is now more resilient and can better absorb economic shocks than two years ago,” said the top ECB bank supervisor Danièle Nouy. The banking associations pointed out that the banks had their risk buffers already substantially increased. “The hard core capital ratio fell naturally in response to stress, however, they remained reliable at all participating banks.”

According to the stringent – under the heading Basel known III – capital rules banks are only fully functional when they can have more than seven percent common equity in the balance. Who slips below this level, may as well not pay a dividend and not pay bonuses. Banks that spend less than 4.5 percent of common equity, are closed.

Among German banks, Commerzbank was the worst performer. Their hard core capital ratio in the stress scenario with 7.4 percent, well below the European average of 9.2 percent. So she came in 44th place, two places behind Deutsche Bank, with 7.8 percent of hard core capital ratio. The German bank holds the legal legacy of the main reason for their poor performance in the stress test. Legal cases the Bank have cost more than twelve billion euros since 2012 Design. “By this we are still suffering from, who currently 5.5 billion euros set aside for it,” said Chief Risk Officer Stuart Lewis. DekaBank came the stress scenario on a hard core capital ratio of 9.53 percent reached and was therefore at least slightly higher than the test mean. BayernLB (8.3) and NordLB (8.6) landed in the back field. The development bank NRW.Bank – a rarity in the circle of the tested homes – was 35.4 percent undisputed leader

The Bundesbank sees among German banks need for further reform.. “Even though the banks are stable, they must also earn like any other business, adequate money. And here is the weak point at present, “said Bundesbank board member Andreas Dombret. The low interest rates, digitization, stricter regulation and tougher competition provided the Institute with challenges. “Banks must urgently think about how they align their business models on it,” Dombret said.

“KPMG partner Daniel Quinten sees German banks as a victim of the stress test method. They meet universal banks and institutions with a high interest portion harder than banks with a very focused business model. Commerzbank building in refinancing mainly on customer deposits, which are particularly expensive in a crisis would after the stress scenario. “But a strong capital loss in the stress test need not be synonymous with a weaker banking system,” Quinten said. There would also have different rules for the introduction of the new “Basel III” -Kapitalvorschriften. BayernLB about was punished in the stress test for their silent contributions which it has in the meantime partly repaid. “If you remove this effect, the big German banks are not worse than others,” said Quinten.

The worst

For the biggest problem child was at the last minute found a solution. The third largest Italian bank, Banca Monte dei Paschi di Siena, submitted a rescue plan that they not only want to give off all loans with no prospect of repayment to a bank rescue fund, but another five billion euros to get fresh capital. The stress test revealed that a crisis would erase completely the capital of the oldest bank in the world because of the billions of load on bad loans. The Institute was in 2014 landed in last place. The Allied Irish Banks scored surprisingly the biggest losers with a capital ratio of 4.3 percent in the stress scenario. Last third was the Austrian Raiffeisen Zentralbank (RZB) (6.1 percent).

(RTR, red)


Kraftfahrtbundesamt are Opel approval for new diesel – RP ONLINE

Berlin. Opel can go with its new models with two-liter diesel engine at the start. The KBA is satisfied with the emission values. They should be much better than before


Opel gets after months of testing for the two-liter diesel of the new Zafira approval by the Federal motor Transport Authority (KBA). The Federal Ministry of Transport confirmed at weekend, a report of “Bild am Sonntag”, which cast doubt on the software were dispelled for motor control. The approval is granted on Monday. The new diesel engine is to be used in the models Insignia and Cascada.

As the newspaper reported, the officials help even achieved when a computer hacker who tested the new software. The new system for waste gas treatment THAT CONDITION significantly stronger, the emissions have been reduced substantially.

Opel sees the old Zafira model allegations, similar to VW to have built an illegal cut-out device to beautiful exhaust emissions of the diesel engine , The investigation committee appointed by the VW scandal the Ministry of Transport reviewed this yet. Opel has the accusation always rejected and justified the reduction of the emission control in certain temperature ranges and at higher speeds with the protection of important components in the vehicle. This is technically necessary and legally


In the Transport Ministry stated on Sunday on request, it now can not find a shutdown of the abatement at speeds over 145 kilometers per hour more instead. In addition, the system now working in the temperature range from minus 8 to plus 50 degrees Celsius. Earlier this Corridor came in at 17 to 33 degrees. There was a significant reduction in nitrogen oxide emissions.

Transport Minister Alexander Dobrindt (CSU) announced the VW exhaust scandal, when new type approvals would be examined much more closely in the future than in the past. The Ministry emphasized that KBA had in the case of Opel now being tested on the dynamometer and on the street and checked the disclosed software

(HeBu / dpa)



Stress test results, according to experts increase pressure on Europe’s banks –

Boerse  Stuttgart investors Club

Underestimated share pearls

Peter Lynch was a fund manager of the Magellan Fund into a legend. He scored in the period from 1977 to 1990, average annual return of 29.2%. One of his secrets of success: Lynch sat on simple and understandable business models and preferred when they appeared for most other stockbrokers boring. In the new edition of the investor magazine three companies will be presented, which could be those underrated share pearls.


Changes August 1 at minimum, Hartz IV and BAföG –

on time earlier this month also occur in August again numerous amendments. This time is mostly about the relationship between education, labor and social affairs. Our Overview:

minimum In the electrical trade, the minimum wage rises in East Germany of 9.35 euros to 9.85 euros and 10.10 euros to 10.35 Euro in West Germany. Starting from 1 January 2018 will apply to all institutions in the electrical trades workers a nationally standardized minimum wage of 10.95 euros. The electrical trade employs approximately 41,500 people

Hartz IV & amp. Co:. unemployment benefit II (Hartz IV) and social allowance will in future be granted for twelve months. Beneficiaries will get faster and easier clarity on their claims. Long-term unemployed can also apply a publicly funded employment for three years. More apartments can be assessed under the basic security as appropriate. Trainees can aufstockend unemployment benefits II. Has anyone found a job, the services for inclusion in work may be granted six months

Qualifications:. for low-skilled workers, there will be better opportunities in the labor market. From 1 August, they can collect a premium for passed intermediate and final examinations if they make up a vocational qualification. For employees in small and medium enterprises there are grants for further training outside working hours. The scheme is limited until 31 December 2020.

Meister-BAföG:. Anyone who wants to improve their skills for trade or industrial champions, the technician, business administrator or certified educators, obtained from August 1 more support. When Meister-BAföG increase, according to the federal government not only the funding rates, but also the grant shares. Also Bachelor graduates receive Master BAföG if they want to make the master and conduct a Workshop later

BAföG:. In the winter semester 2016 rise for pupils and students the BAföG rates seven percent. Students own apartment can get up to 735 euros a month, because even the housing benefit claim increases disproportionately from the current 224 euros to 250 euros. Higher allowances for the parents income 110,000 pupils and students in addition BAföG entitled

Free router choice. Internet providers can not prescribe longer their customers, what hardware it for connecting to the need to use power. From 1 August free device selection applies. Previously, customers could to be forced to use a particular terminal for the Internet

Psychiatry:. The placement in a psychiatric hospital is limited to serious cases. In less serious diagnoses a disproportionately long accommodation is to be avoided. To avoid self-fulfilling routine assessments, writes the law the exchange of experts before

German Railways:. Customers with a BahnCard 50 get now as the holders of a BahnCard 25 permanently a discount of 25 percent to low prices in the long-distance transport. Sparpreis tour are from August are exchanged or refunded only until the day before departure, not on the day of travel itself. In addition, 12.50 Euro are when buying tickets on the train now matured five euros more than previously. Those who book a reservation for the 1st class, but buys a ticket, 5.90 Euro is charged instead of the previous 4.50 euros. When buying a ticket for 1st class the reservation included.

remains Moreover, the German Railways offers between August and the timetable change in December with the action “For me and for you” two sample-BahnCards the price of one on. The BahnCard50 for seniors is to have effective until the end of September.


Europe’s banks through stress tests – now everything is good? – THE WORLD

Frankfurt / Main – material 12 000 Data bank, money per house a PDF with 20 pages. Once again, Europe’s banking supervisors have massively raised numbers to check the financial institutions on the continent to their resilience. Are they prepared for a slump in the economy?

Are the capital buffers of money houses when housing prices collapse? With such scenarios European banks were tested through its paces. Although banks are now in a better position according to statements of Supervisors as a few years ago, the suspicion was last big in the industry. And what about the Italian crisis banks? The results bring at least some clarity.

How did from the tests?

Unlike the last stress test, there was no on-site examination. The Institute had the scenarios through their internal systems to run and then fill in appropriate tables of Supervisors. was published then, how the banks under the various scenarios sections using the hard core capital ratio as mentioned. It is considered a crucial indicator. It sets bank capital in proportion to the risks incurred and provides information on the respective capital buffer against crises.

How many institutions rayed the overseer?

the European banking Authority has taken 51 institutes under the microscope, including 9 German. At the same time examined the European Central Bank (ECB) in a stripped version 56 more banks from the euro zone. was published only the EBA member.

What did the guards do?

was performed to determine whether the financial institutions have sufficient capital buffers to cope with an economic crash and collapse in property prices. The scenarios that have been played out on the basis of the figures for the end of 2015, saw massive economic shocks in Europe: For this year and next a shrinking by 1.2 percent and 1.3 percent economic, in 2018 only 0.7 percent growth , What was new was that legal risks are involved – about penalties, have to pay the banks. However, these as were not specifically published, but together with other published “operational risk”.

What is the result failed?

Overall, pretty neat. Thanks to massive recapitalizations of banks sector in Europe as a whole is quite stable, said the EBA. The nine German institutes in the test proved to be equipped to be sufficient, though in some cases only slightly. Particularly strong came under pressure, Commerzbank and the German bank, but they were still on the brands previously identified by analysts as critical. The weakest capital ratio showed in the test as expected the Italian bank Monte dei Paschi on. But you thought for a moment before the announcement of the stress test results before a rescue plan. Exciting could still be whether the largest Italian bank Unicredit reaches for a modest performance in the stress test to further capital measures.

What are the consequences for the banks? ‘ / p>

Unlike the stress test in 2014 there was no a priori by Faller. The guards gave up requirements of capital ratios, had to satisfy the banks. Instead, the results will be used in the regular review of business models and risks of institutions. The authorities put towards year fixed individual capital add-ons and also determine how much money should pay the banks for dividends or interest on equity-related bonds. Is the capital buffer is too small, the warden may prohibit such dividend distributions to shareholders.

Creates the test a new confidence in the stability of banks?

This remains to be seen. In the past, the reality frequently overtook the test scenarios. As a diagnostic tool, the last stress test was but been quite successful, says the chief executive of the Association of German Banks (BdB), Michael Kemmer. After only was omitted therapy. When stress test in 2014 fell by nine Italian banks. But then came a long time nothing to resolve their plight. Today, critics say again, have the stress test of limited significance on the stability of European banks. And about the consequences of the Proposed referendum on United Kingdom membership of the European Union-vote the British unrecognized the current test.

What criticism there this time?

It pushed many to evil that only the currently unrealistic scenario of rising interest rates was examined, but not the consequences of a further reduction in interest rates. But just suffer banks, for example, because they can hardly create even made profitable own deposits and their interest margin shrinks as loans extended. Some like the Bremen economist Rudolf Hickel suspected as fundamental conflicts of interest in the ECB. For if negative interest has been played out in the test, this could have been a slap in the face for the monetary policy of the Fed. “It was always a mistake to concentrate the double task of monetary policy and supervision of the ECB.”

Why two supervisors were involved in recent tests?

the ECB is responsible for banking supervision in the euro area since November 2014 and controls the 129 largest institutions directly. Of which take the current test but only 93 institutions participate. The other had been recently screened as the Greek financial institutions or subsidiaries. The EBA is the top Banking Authority of the European Union and therefore also responsible for banks in non-euro countries like Britain.

ECB Banking Supervision

the SSM

European Commission on banking union

EBA to stress test in 2014

ECB stress test in 2014

list of monitored by the ECB banks

EBA to stress test in 2016

message banking association to stress test

films Bankers Association for stress test

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Stress test for financial institutions: losers are the German banks – FAZ – Frankfurter Allgemeine Zeitung

If a lesson to be learned from the financial crisis, it is this: The banks need more capital to cushion failure of management and other mischief. The taxpayer should not have to save it again, that was the promise. They can check the progress by means of the stress test.

Georg Meck Author: Georg Meck, Deputy Head of Economics and “Money & amp; More “the Frankfurter Allgemeine Sonntagszeitung.

In the early hours of yesterday Saturday, the European banking (EBA) has now submitted the most recent result. And as if to suggest the specimens have afterwards praised himself. It was well on the way, according to a joint message of the German financial sector: “Even in this very severe stress scenario show German banks their resilience.”

More about

Really? So all is not well, the oint economy Isabel Schnabel, since the stress test has ignored the biggest stress of bankers: “Major risk factors such as low interest rates have been hidden,” criticizes the economist. It builds that the “market pressures could be stronger than that of the overseer.” Because so casually, as the bankers would have it, the results are not to be interpreted. “European banks are threatening capital gaps up to 20 billion euros in a stress scenario,” warns Philip Wackerbeck, CEO of PWC Strategy. The financial expert expects that the European Central Bank will request in December some banks to capital.

Bitter Embassy of Germany

In 51 banks in Europe, the regulator has examined how they cushion shocks can. We tested about a violent crash of the economy or the slump in property prices

The bitter message from a German perspective. Among the ten most vulnerable banks, there are the two big German houses German bank like Commerzbank, which is why both immediately robustness assure: “Our balance sheet is healthy,” says German Bank Chief risk Officer Stuart Lewis. Marcus Chromik, the risk management board of Commerzbank, says: “We are strong and resistant to stress.”

                                                                                                                                                                               Infographic / The economic uncertainties banks  in Europe
                                      Which bank is the most vulnerable to a crisis?



An unpleasant surprise, it is in any case that the two banks come into focus and that Germany generally on the losing side of the stress test. For the unfavorable scenario, the actual stress, the negative impact on the equity only in Ireland were higher, says strategy consultant Philipp Wackerbeck: “Even Spain and Italy put the better off.”

Not Italian Tradition Bank

the acute need of the Italian tradition bank “Monte dei Paschi” has been known for weeks, in the early hours of Saturday, she has presented a multi-billion dollar rescue plan, just in time before the bank went out with a negative equity ratio of the stress test. The other Italians have performed relatively well, German banks rather weak. Notable exception is the “development bank of North Rhine-Westphalia”, the total reaches number one, but is a special case, with no risk and customer business.

In addition to the upside, the loan books of German companies are solid as at the last test and better than the rest of Europe. This means that the default risk of loans is lower. Furthermore, the German banks have increased in the past two years, their capital.

So What’s poor performance is the stress test? One reason is to be sought in the procedure, another – more dangerous – in principle, more on that later. First to the rules, which explain the lower ranks. Universal banks are treated tends to be worse in the stress test, as the risks of individual regions are added. And above all: The testers have a “behavioral risk” introduced which measures how criminal energy and lack of control can overthrow a consolidated embarrassed: Because it looks bad for the banks in this country

Next catastrophe. happened at another location

the Commerzbank had to shell out the most expensive punishment of their history in connection with Iran-shops in America. The German bank drags a welter of lawsuits behind him, for the resulting expected loss, the Bank has made € 12 billion reserves since 2012, more 12 billion, the reduction of scrap papers cost. “For every billion,” says Executive Lewis, “we would have 0.25 percentage points more equity.” The world would be different.

In fact, a problem of such stress tests is that they extrapolate past, even if everyone is aware that the next catastrophe in the financial sector happened at another location

This brings us to the fundamental, the real problem. the German banks are less profitable than its European competitors. And where no profits are, because there is no equity forms. As simple or as difficult as that. The German bank, which last week reported a meager profit, has already announced tougher austerity measures. Again, this will be enough difficult, as long as the zero lower the core of the business is attacking: collect money and lend to higher interest. That has done in times of negative interest. “Banks will have to proceed more radically,” says PWC man Wackerbeck. “The cost of 10 or 15 percent decrease is not enough.”

The return of the banks are at 6.5 percent on average far below the pre-crisis, as 15 to 20 percent have been achieved, some even from 25 percent have been dreaming. Today is to do with banks no state that investors have long since lost interest in them, such as stock prices prove that the market capitalization of Europe’s banks, measured in the respective asset in the balance sheet has halved from April 2015 to July 2015. This is the true stress for the people in the bank towers.


Saturday, July 30, 2016

Stress test for banks: German Bank and Commerzbank are considered vulnerable – Tagesspiegel

Safe should be the banks, through a new financial crisis better. Many European institutions are still far from it. This shows the stress test, the bank authority EBA has carried out at 51 money worldwide. In this long not only have the Italian banks problems. Also two Irish financial institutions that have been saved during the financial crisis of the state, and the Austrian Raiffeisen Zentralbank (RZB) disclosed weaknesses. The two major German banks, German Bank and Commerzbank, among the rather weak candidates. The institutions have strengthened their capital buffers in recent years, but had not yet been completely healthy, says EBA head Andrea Enria. “There is still a lot of work to do.”

How German banks cut

The German Institute cut the stress test side are not as good as hoped: German Bank and Commerzbank are measured to their capital resources to the weakest ten institutions in Europe. Your capital extends only so straight, so as not to fall below the threshold, issue warnings from the experts: With a core capital ratio of seven percent they begin to worry. The German bank comes to 7.8, Commerzbank to 7.4 percent.

graphics: Tsp

the banks themselves are still not satisfied: “We are in 2016 with a better result from the test came out as 2014, although this year’s test was more challenging,” says John Cryan, head of Deutsche Bank. “The stress test shows that the Bank is well equipped for even tougher times.” At Commerzbank that sounds similar. Chief Risk Officer Marcus Chromik says: “Commerzbank is durable and resistant to stress.”
Financial experts estimate their position against it a little different a. “Calm can not one of these stress test,” says Dirk Schiereck, banking professor at the TU Darmstadt. It is astonishing that the German banks are, despite all efforts no progress in recent years. Looking at the figures more closely, this effect is strengthened. So argue the banks, as well as the EBA, especially with the core capital ratio: ie the equity in relation to the risks. on the other hand, many economists hold another metric for decisive: Equity to total assets (leverage ratio). This figure is considered reliable because they can calculate clear – unlike the risks that are difficult to predict.

If you look at this metric which fall equally by three German banks. Experts maintain a leverage ratio of three percent is appropriate – and German Bank (2.96 percent), lt NordLB (2.99 percent) and Bayern LB; TH & gt; (2.8 percent) are marginally below. Commerzbank manages 3.04 percent only so just about the ultimate brand. Therefore, says Clemens Fuest, head of the Munich-based Ifo Institute, then: “The banks need more capital, not only in Italy.” However,

Bank Professor Schiereck does not believe that the German Institute tackle decided this issue. “The most obvious solution would be a capital increase,” says Schiereck. That is, the banks could then obtain via the issue of new shares fresh money from investors. But John Cryan, head of Deutsche Bank, which ruled out for his house in advance of the test. Such a move would greatly burden the existing shareholders, their shares would be diluted. This will probably prevent at any cost the bank given the already weak share price.

What about the Italians

have to

concerns Europeans as expected especially at the Italian Institute – led by the oldest bank in the world, Monte dei Paschi. She cut so badly like no other institution in Europe. The biggest problem the Bank of Siena are the many bad loans: it has awarded 360 billion euros, the most likely no longer able to repay the customers. Just an hour before the stress test results were published, the Institute has therefore submitted a rescue plan. The institute wants to get rid more than half of its bad loans and implement a capital increase of five billion euros. Backing gets Monte dei Paschi and advice from other banks. A consortium of Italian and foreign institutions – among them should be the German bank, Credit Suisse and Goldman Sachs – to the issue of new shares to hedge.
Sven Giegold, MEP of the Greens, however, reminded the audience that one must consider whether, with this deal does not even state guarantees in the game are. If so, Italy could thus violate the state aid rules of the EU. States may now save in exceptional cases banks. Instead you would only step in the bank’s creditors: So all that hold shares or bonds issued by these institutions. In the case of Monte dei Paschi which are to a very large number of small savers – on the other, large banks such as German bank or investment firms like BlackRock.

Why is there criticism of the stress test

Politicians and economists criticize the implementation of the stress tests partly violently. Many disrupts the sheer selection of verified Geldhäuser. So much less institutions time been studied as yet in 2014. While standing audited 51 institutions for 70 percent of total assets of all European banks. Many Wackelkandidaten remained so but outside it: Neither Portugal nor Greece from a bank has been tested. “This makes the stress test to a pure calming measure for the public,” says Bank Professor Schiereck

In addition, the auditors have low interest rates not included in its test -. Here are preparing the banks big problems. In the short term instead excessively high interest rates have been placed under the stress test, criticized Green politician Giegold. That would even be still appear as solvent ailing banks. “The stress test is only one naive false sense of security,” he says.

Even Lothar Binding, financial spokesman of the SPD faction in the Bundestag, sees weaknesses – especially when it comes to the assessment of government bonds in the banks’ books. “Risks from government bonds have not been considered in the stress test,” he says. Behind this is a fundamental problem: If banks provide business loans, they have to put money aside for safety’s sake – they borrow against it its own State bonds money that is not the case. That is, banks must consider government bonds from their own country as a risk-free investment. “That’s in the current situation in Europe more than tricky,” criticizes Binding. Especially since the Greek crisis have clearly shown that government bonds are simply not risk-free securities.

What from the test follows

Unlike in school, there is the stress test neither Nachsitzer even homework. The Bank draws authority from the results for the time being even no consequences. So you issued any institute the requirement to increase their capital cushions immediately. Instead, it forwards the results only to the supervisors of banks continues, which should take them into account in its further inspections and talks with the institutions. Economists believe this is problematic.

“The stress test can strengthen in this way hardly confidence in the banking sector,” said Dorothea Schäfer from the German Institute for Economic Research (DIW). Such a test could you actually give it. Especially as the experience with the recent stress tests have shown that no consequences were drawn so that Italian banks have already 2014 extremely poorly -.. but hardly learned something from
Isabel Schnabel, an economist and member of the Advisory Council, which looks like “It remains intransparent. how and whether the stress test results are translated into regulatory capital requirements. “they tend not to believe that the supervisors are the banks now come down hard and demanding more capital.” This makes the stress test to a toothless tiger, “she says. Waiting one must However, as the markets react on Monday. “Their pressure could outpace the overseer.”


Italy after the stress test: crisis bank gets boring testimony – NEWS



 Saturday, July 30, 2016


 At the European stress test cut Italy’s banks, although better than expected, but the crisis bank Monte dei Paschi gets a particularly bad witness. The banking crisis is far from over, and Prime Minister Renzi is still under pressure.



Italy’s largest problem child had taken precautions. Not even an hour before the publication of the stress test results presented the ailing bank Banca Monte dei Paschi di Siena (MPS) a multi-billion dollar rescue plan. Shortly thereafter, it was clear that the ailing MPS receives as expected the worst witness in the stress test. Although the money House wants to tackle its difficulties and the other Italian institutions not as bad as feared sections: remain the fundamental problems of the banking sector. The Monte dei Paschi, founded in 1472 its intention to deliver more than half of their bad loans and implement a capital increase of five billion euros. The mountain of bad loans totaling about 360 billion euros is one of the biggest problems of Italian banks. The value is about one third of all these loans with high default risk in the EU and is also a legacy of the years of recession, the consequences of which the third largest economy in the euro zone still groaning.

“In Italy the banks continue to suffer from the economic crisis of the country. There is no growth in order to achieve income and compensate for losses from bad loans. This problem persists, “said Martin Hellmich, banking professor of risk management at the Frankfurt School of Finance. Banks are stuck in a vicious circle: In their situation they can not grant new loans, which economic growth slows. But just the money houses are in turn dependent on a strong economy in order to strengthen their balance sheets on their own. Also Philipp Wackerbeck, strategy consultant and banking expert at the accounting firm PwC, said: “However, the Italian banking crisis is not so survived the market will continue to exert pressure on them to clean up their balance sheets..”

In the stress test in 2014 were nine Italian banks flunked. Here is little happened in the aftermath to the limitations of the Institute, criticized Michael Kemmer, CEO of the private bank association BdB. The expert Daniel Gros and Willem Pieter de Groen from the Brussels think tank CEPS judge: “The Italian banks have failed in all previous European stress tests since 2010 or were very close.” Analysts see more profound problems in Italy. In many places there are years of mismanagement and nepotism, for no one will be held accountable. In addition a lot to lax lending, beyond the banking sector is completely oversized, highly fragmented and inefficient. Policy and banks are closely intertwined in Italy together – from a banking crisis can therefore also quickly become a national crisis

More about .

The problem of banks therefore employs Prime Minister Matteo Renzi and his government for months. Renzi is domestically under strong pressure, top priority for him to spare small investors in possible bank bailouts – but this is contrary to the EU rules. Last year brought in Italy a pensioner around who had lost all his savings in a bank rescue – and many voters gave the government the blame

In Brussels and other European capitals growing fear a politically unstable. Italy. In the fall of the important referendum on the planned constitutional reform is at that Renzi has linked his own fate. In case of defeat Renzis Italy could elections threaten -. A nightmare scenario for the EU, since then could possibly get the european critical and completely unpredictable Five Star Movement to power



Edeka-Tengelmann fusion: Sigmar Gabriel demands corrections to the Court Decision – THE WORLD

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Gabriel wants to correct Edeka, Tengelmann rating

the dispute between the Minister of economy and the OLG Dusseldorf to the Edeka-Tengelmann fusion continues. SPD leader Gabriel has now completed a “constituent corrections”.

     The dispute between the Minister of Economy and the OLG Dusseldorf to the Edeka-Tengelmann fusion continues. SPD leader Gabriel has now completed a “constituent corrections”.

Photo: AP economy Minister Gabriel has the Oberlandesgericht a so-called facts corrections filed because he wants corrections to its special permit

economy Minister Sigmar Gabriel (SPD) is contesting allegations from the Oberlandesgericht (OLG) Dusseldorf at its special permit for the merger of supermarket chains Edeka and Kaiser’s Tengelmann to defend. Gabriel had a so-called “facts Request” filed with the court, confirmed a spokeswoman of the ministry on Saturday a report by the Berlin “Tagesspiegel”.

He wants to lead the Court to correct “facts and findings of fact”. They concern to allegations that had set up the court in support of his urgent decision on 12 July. At that time the judges had initially stopped the ministerial approval for the merger.

The spokeswoman stressed that the request had nothing to do with appeals. False illustrated situations in order to be corrected. “It is not about the right of appeal. We currently consider whether we take legal means,” said a ministry spokeswoman.

The Minister urges the court according to a report of the “Tagesspiegel” among other things, to correct the finding that he had met on 1 December Edeka CEO Markus Mosa and Tengelmann CEO Karl-Erivan Haub together for an interview. Rather, it had gone to separate meetings. In addition, there had been not a four- or six-to-one discussions, but there are “in-process” officials were present. Not really was also the accusation that an opinion of Edeka lawyers to offer the competitor Rewe had been treated by the Ministry as confidential.

Gabriel had to in the recent days repeatedly against accusations defend, he had not acted properly in the process for ministerial approval. The SPD leader had admitted inter alia, that there had been a hitherto unknown interview with Mosa and the head of the services union Verdi, Frank Bsirske, in December, 2015.

The Oberlandesgericht Dusseldorf had expressed against Gabriel suspicion of partiality and lack of neutrality. The judges had declared the special permit for the merger in an urgent decision on July 12 to be illegal and reiterates its concerns on July 20 again. The final verdict is still out.

      Reuters / dpa / ott

slap Sigmar Gabriel – court conceded ministerial permit

              The Oberlandesgericht Dusseldorf has stopped the special permission of Federal Minister Gabriel for the acquisition of Kaiser’s Tengelmann by Edeka provisionally. The judges doubt Gabriel neutrality Source:.! The World

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Gabriel wants corrections in the decision to Edeka / Tengelmann – THE WORLD

Berlin – In the dispute with the Higher Regional Court of Dusseldorf for the stopped special permit for the merger of supermarket chains Kaiser’s Tengelmann and Edeka Economy Minister Sigmar Gabriel is in the offensive.

Gabriel had submitted a so-called facts corrections before the court, confirmed a spokeswoman of the Ministry. The court should correct assertions that have placed it in the grounds of its decision of 12 July. The OLG had then stopped as approved by Gabriel conditional acquisition of Kaiser’s Tengelmann by Edeka in summary proceedings at first.

The application does not have a legal action against the OLG -Decision. The spokeswoman stressed that it should only facts misrepresented be corrected in the decision. “The legal redress we consider yet.”

As the Berlin “Tagesspiegel” reported, the Ministry would have clarified, among other things, that Gabriel on 1st. I December Edeka CEO Markus Mosa and Tengelmann CEO Karl-Erivan Haub not together, but separately met and talked. In addition, there had been about four or six-to-one discussions, but there are in each case also proceed senior officials have been there.

Similarly, the criticism of the Court, the opinion of Edeka Rewe lawyers to deal was handled by the Ministry as confidential, do not agree. “She was part of the case file and was placed in the context of access to the file on 19 January 2016. available”, cited the “Tagesspiegel” from the application. Even Gabriel had led no secret negotiations. “Discussions with the parties to a proposed transaction or relevant to the debate and decision Third are common and allowed in
merger control proceedings.”

The Court of Appeal Dusseldorf had initially stopped the ministerial approval for the merger. The First Cartel Division assessed the dispensation of Gabriel in a preliminary examination in the emergency procedure as unlawful. It had some parties, the impression must arise that the minister had been biased in its decision, it was said in the decision (Az .: OLG Dusseldorf, VI – Kart 3/16 (V)). The Minister had conducted secret talks at the crucial stage of the approval procedure with Edeka and Kaiser’s Tengelmann. For the other parties, the impression must impose that the Minister had the procedure no longer neutral and objective, but one side out in favor of Edeka and Kaiser’s Tengelmann.

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ECB: The stress test was worth it – TIME ONLINE

Even before the announcement of the results, no one was really happy with the new stress test for European banks. A supervisor scolded in dialogue on the other supervisors. The Association of German Banks criticized the test ignored the problem of low interest rates. And many a banker Nölte that the examination to oversimplify the round will be and the particularities of his institution – will not do justice – of course.

Many participants talked the importance of exercise down even before it was locked. With success, because when the results were published on Friday evening at 22 o’clock, they seemed already to care no more really. Oh, another stress test – and hand on heart, does not every Friday night to do better than to deal with the core capital ratios of Powszechna Kasa oszczędności Bank Polski SA? Just.

Much is rightly criticized. The test of the EU banking supervision EBA comprises only 51 institutes and a problem country like Portugal it has the same completely excluded from the exercise. That his scenarios let the low, often negative interest outside front that will make many banks in Europe already difficult to create and probably much longer eat by their budgets, as previously thought, is absurd and reduces the meaningfulness of the results. In addition, all the effort is little, if then no conclusions are drawn from it, as the stress test 2014 for any Italy happen. There the disclosed problems of banks smoldering cheerfully to herself until she hochpoppten again this summer.

Nevertheless, the exercise is not in vain. The stress test is worth a closer look.

  • First, the data. If, for example, the material for the institution with the most valid when regulators Code 7LTWFZYICNSX8D621K86 makes itself better known as German Bank, the groans at first: 29 pages, closely printed, with dozens tables and thousands of figures. They show how the Bank’s portfolio looked the end of 2015 and what consequences would the two tested scenarios for capitalization. That is transparency in an extent that is more confused than help initially. Those who really want to know how big the volume of Lithuanian government bonds with a maturity of three to five years, which holds the bank? Nevertheless, analysts and investors are happy because of the crash of the bank stocks this year is also due to the feeling of not knowing exactly what else is in the houses. The published data will provide some new insights
  • Secondly. The old risk The largest by far hole into. banks’ capital rips the imputed recession in the test. That should politicians and citizens remember that many institutions now appear more stable than they are, especially in Germany. Currently the economy is doing well in this country, only a few loans fall out, according to little risk provisioning, the banks have formed. So it can and it will not stay permanently, the next economic downturn will come. While German institutions have solid cut, but if re larger provisions for bad loans have to be formed, is more apparent that many institutions have difficulty at all to make money.
  • Third. the new risk For the first time, the stress test has also drawn legal risks. Previously stayed overseer on credit losses or market fluctuations, since they have recognized that a failure of management or criminal behavior of employees represent a substantial problem. States impose penalties billion, processes can also be expensive. It may be that the test makes it too easy by updates the legal costs of the past years in the future, but before new offense no bank is immune – and EUR 71 billion, which beat legal risks in the test to Beech underline, how important it is that the industry is the further prevents.

It is encouraging that the investigated banks stand in total significantly more stable than the stress test in 2014. Within two years, the 51 houses their capital cushions total a whopping 180 billion euros bolstered. In the crisis scenario, however, not only banks from Spain, Italy or Ireland are doing badly, but also institutions in Germany, Austria and the UK.

And some homes remain problem cases. The Italian bank Banca Monte dei Paschi di Siena, and has come out in the test catastrophic secured after all finally an aid package that they should stabilize, just hours before the release of results. The German bank provided from durchwachsene numbers but assured to be “on track” to meet the target for its capital “until the end of 2018″. Let’s see how the analysts now bend over the numbers, be judge – and how the stock market reacts on Monday



Edeka-Tengelmann fusion: Gabriel justified for secret talks – Times Online

German Economics Minister Sigmar Gabriel (SPD) has denied against the accusation that he may give information on the special permit for the acquisition of Kaiser’s Tengelmann by Edeka hesitant award. As it was revealed by a report from the levels on Thursday, Gabriel had often met with Edeka CEO-Markus Mosa, as previously claimed. Besides the two known meetings between 1 and 18 December 2015, further to have taken place on 22 December 2015 attended by the head of the trade union ver.di, Frank Bsirske, to have participated. “It is clear that such conversations are possible, common and acceptable”, it is now the Ministry of Economics. They served the necessary care so that the ministers can gain a comprehensive picture before taking a decision.

As the Frankfurter Allgemeine Zeitung reports wrote Gabriel in a letter to the chairman of the economic committee of the Bundestag, Peter Ramsauer (CSU), he stands for a current report and questions of deputies available. Gabriel had ignored received special permission to supermarket merger of Edeka and Kaiser’s Tengelmann over the veto of the Bundeskartellamt. In mid-July had stopped this ministerial approval to operate the retail group Rewe, the Higher Regional Court of Dusseldorf. The judge threw Gabriel before partiality because he had conducted secret talks with the heads of their preferred supermarket chain Edeka.

Several discussions with applicants and unions

In the letter to MPs Gabriel writes now that the General court raised many questions, procedural questions about and welfare reasons for its decision, such as the “security of workers’ rights”, to which he would not take now. He had only been focused on the meeting of 1 and 18 December 2015 because they were associated with the OLG decision.

“He had already publicly emphasized at that time that he and our Ministry have conducted several interviews with applicants and unions to get a comprehensive picture of the to gain position, “reads the letter.

In addition to the request by 22 December of the Greens deputies Katharina Dröge subject to the Ministry before further parliamentary questions on various phone calls and call constellations. The answers would be published on the ministry’s website as soon as they are sent to the deputies.

“takeover by Edeka is the worst of all possible variations”

Gabriel ministerial approval was met with great opposition. Daniel Zimmer, who had been entrusted as head of Monopolkommissionmit with the examination of the matter was, resigned in protest against the decision of the Minister of Economy. In an interview with Spiegel Online the Professor of Commercial Law said now, the real problem would no longer be discussed: “The acquisition by Edeka is the worst of all possible variants.”

After the Bundeskartellamt had rejected the acquisition of 451 markets from Kaiser’s Tengelmann by Edeka, the Monopolies Commission had been turned on. You should consider whether Gabriel’s special permission was justified. The Minister may in fact defy just about decisions of the Cartel Office if a takeover “benefits for the common good” brings. The Monopolies Commission came after months of testing to the judgment that decision does not constitute a reference to the common good. Your recommendation was clear: the merger should not be approved.

Ex-boss room now renewed his concerns: the acquisition of Kaiser’s Tengelmann by Edeka would lead to a “clear lessening of competition”. There were very many areas in which talked both supermarket chains stores. For Edeka it would make sense, at these locations to close a branch. “The negotiated by the Minister inventory warranty applies only to the Kaiser’s Tengelmann branches. Accordingly, the Group has incentives, old Edeka shops to close,” says Zimmer. For this protection does not apply. Room proposes hand before splitting Kaiser’s Tengelmann and to give to different buyers.


Banks stress test puts Europe weaknesses openly mercilessly – THE WORLD

The expense in advance of this year’s European bank stress tests was immense. For months had worked (ECB) about 200 supervisory experts on the design and evaluation of crisis models solely with the European Central Bank, at the end were for each of the 51 banks tested before approximately 12,000 individual data. But just when their own resilience just problems: As the London-based regulators of the European Banking Authority EBA presented its highly anticipated report to 22 clock online, the server kept the onslaught obviously briefly not stand

the results, which were a few minutes late but finally available, draw a mixed picture of the European banking sector. With two exceptions – the Italian crisis bank Monte dei Paschi and the Irish Allied Irish Bank – indeed survived the simulated test in crisis scenario all institutions. Say enough core capital left to inferior risks in their business model and to stay even in the stress scenario still above the central bar of 5.5 percent. But eight years after the outbreak of the global financial crisis, the European banking system is as far from robust. Germany is no exception. Just the two largest houses are in the test of the ten weakest candidate

In other words: a new financial crisis would the German difficulties Bank and Commerzbank meet. In stress scenario of Supervisors, which simulates a three-year-long economic crisis, took Commerzbank with a hard core capital ratio of 7.4 percent only place 44. The German Bank, the International Monetary Fund recently because of their systemic importance and interconnectedness as “dangerous Bank of world dubs, managed with 7.8 percent just two places further forward.

“more resistant than two years ago”

Both institutions stressed nevertheless return post their own stability. “We are in 2016 with a better result from the test came out as 2014, although this year’s test was more challenging,” said John Cryan, CEO of the Deutsche Bank. the stress test show that the Bank is well equipped for even tougher times. “Commerzbank is durable and resistant to stress,” said Marcus Chromik, risk Officer of Commerzbank. “even under the adverse conditions of the EBA adverse scenario would be the stability of the bank guarantees.”

and the overseer expressed satisfaction. “The banking sector is now more resilient and can better absorb economic shocks than two years ago,” said the top ECB bank supervisor Danièle Nouy.

top ten banks in Europe in the stress test

However, just because doubts remain. Although the crisis simulation was significantly harder designed according to the sensitivity of the industry than the previous model: including legal risks were first detected, which may result from the misconduct of an employee. But unlike the previous stress test this time there was no prescribed capital ratio, which had reached the banks at least to exist. In addition, significantly fewer institutions were tested as two years ago.

Even the capital ratios shown do not allow for easy interpretation, because the overseer the various basic and have defined stress scenarios for each country and for each institution individually. Germany and its banks have in fighting, for example, with a significantly smaller decline in economic growth as Ireland. This is the reality, although closer than a uniform requirement, but difficult to compare. Other violations that make the banks quite create – from the uncertainty about the Proposed referendum on United Kingdom membership of the European Union Great Brit Annies to the occupation that began two years minus ECB interest rate policy – not play a role in the stress test. And the problem banks in Greece and Portugal, which like those of Italy suffer greatly under the legacy of bad loans, come in stress test for lack of size not even before.

scenarios to design?

is correspondingly great criticism. “EBA and ECB stress after the announcement of the stress test results, the resilience of European banks. Since very specific scenarios were tested, which have hidden key risk factors such as low interest rates, this statement is too far-reaching,” said Bonner economy Isabel Schnabel of “world” , Direct regulatory effects have not the stress test. To stay transparent manner, and whether the results would translate into regulatory capital requirements. “I think this is unlikely, because the guards – have repeatedly stressed that they consider capitalized sufficiently for the banks, making the stress test to a toothless tiger – as well as the policy..” The question is now how the markets would react. “Their pressure could outpace the overseer.”

In fact, it has Europe, crisis-proof, unlike the United States, failed in recent years, the Institute to make. The stress test would have the opportunity to change anything. How shaky the foundation is still, shows a recent study by the Mannheim Centre for European Economic Research (ZEW). In it, the researchers have their own stress test scenario played out with a stock market crash by 40 percent within six months. If there were such a financial crisis, could be expected in the European banks with deficits of up to 882 billion euros, the authors <"prefix_1" h2 class => warn and call for comprehensive measures to recapitalize, also in Germany.

is still much to do

Stutzig makes that do the supposedly solid European banks remains difficult, sufficiently make loans to the economy and inflation again bring in momentum. Although credit growth has recently risen. Judging by the ample liquidity in the euro zone, it is still far short of what one would expect from a weatherproof banking system.

Not to mention the case of Italy. Their third largest institution and oldest bank in the world, Monte dei Paschi di Siena, cut the stress test the worst. The capital base of the bank fell in Test 1451 bps, the equity ratio was erased as it were. The Institute succeeded just before gate closure to put together a multibillion dollar rescue package that was approved by the ECB before the publication of the stress test.

“We recognize well that there has been a capital raising to a great extent, “summed EBA head Andrea Enria shortly after the results of stress tests. Nevertheless, one can not exhibit in any case with a certificate: there is still work to do.

At least in this point should the overseer reap no contradiction.


Friday, July 29, 2016

Bank stress test shows progress in Europe – FAZ – Frankfurter Allgemeine Zeitung

The results presented on Friday the tests of 51 major European banks by the European Banking Authority (EBA) and the European Central Bank (ECB) show a total of the industry in a better shape than when last stress test two years ago. Nevertheless, banks remain called upon to increase their profitability to improve their equity base and to optimize their business models in a difficult environment. The only bank that in the test very bad abschlossen is, as expected, the Italian Banca Monte dei Paschi, located for years in trouble.

 Gerald  Braunberger Author: Gerald Brown Berger, editor-in business, responsible for the financial market.

Shortly before the release of the stress test at 22 o’clock the Italian bank published elements of a rescue plan, which provides for a capital increase of 5 billion euros and the sale of bad loans on nearly 10 billion euros. New provisions for the capital shares are to be acquired by an international banking syndicate and sold. Should open the plan, the bank would not need a capital injection by the Italian State, of which it had given in the past few weeks very controversial discussions. As heard from financial circles, the ECB has approved the rescue plan of the Bank of Siena.

In the stress test was all about cutting the banks assuming two economic scenarios in the coming years, but not a formal pass or fail , According to the EBA, the core capital ratio of 51 audited banks has improved significantly in recent years and reached 13.2 percent last year on average. Assuming an unfavorable economic development in the coming years, the average rate would average 9.4 percent in the year 2018th “The results of the tests show that banks have improved their resilience in the euro area,” the ECB said. Only one bank, Monte dei Paschi, would be less than the critical value of 5.5 percent, and even lose their entire equity in a crisis.

German bank may establish by test

Below average cut off the German Bank and Commerzbank, fell behind the hard capital ratios in difficult economic scenario in 2018 to 7.8 and 7.4 percent, but would thus are still higher than the critical value of 5.5 percent. “We perform better in this Test starting as the test two years ago, although this year’s test demanding was,” said the CEO of Deutsche Bank, John Cryan.

more about

In a message to employees Cryan wrote:” We can do more. Our environment is challenging and can be even more challenging in the coming months. The results of the stress tests show that we are well equipped for hard times. In OTC equity trading in New York, the share price of Deutsche Bank rose 1.5 percent after the release of the test

“The Commerzbank is resistant and stress-resistant, “says Chief risk Officer Marcus Chromik. “Even under the adverse conditions of the EBA stress scenarios the stability of the Bank would be guaranteed. The low-risk balance sheet and good capital ratio of Commerzbank are proof.” Nevertheless probably many observers did not expect that Commerzbank poorly than the German bank. The CEO of Deka-Bank, Michael Rüdiger, sees his house with a capital ratio of 9.5 percent is well equipped in the poor economic scenario. Disadvantaged

German and Italian banks?

The results the revised German banks a total commented Bundesbank President Jens Weidmann: “the German banks have strengthened their capital base in recent years, while specifically reduced risk positions the resilience of the German banks has increased significantly the stress test shows that the German banks are equipped.. to withstand these severe shocks. Nevertheless, it is important that the banks, in view of the impact on earnings of the low interest rate environment, review their business models continuously, use opportunities for consolidations and cost reductions and face a changing competitive environment. “

the stress tests are controversial among experts, because in them is not the consequences of possibly years of negative interest rates are tested, among other things. The German economy Isabel Schnabel wrote on Friday night on the message service Twitter, neither the politicians nor the supervisors in Europe wanted tougher capital guidelines. It is therefore not surprising that the stress test on the basis of the existing Capital Requirements Directives show a greater resilience of banks in a crisis. Other critics believe that the design of tests German universal banks at a disadvantage not only to German Landesbanken, but also to Italian banks.


Monte dei Paschi: rescue plan for Italian bank is – SPIEGEL ONLINE

The rescue of the third-largest Italian bank Banca Monte dei Paschi di Siena is in the bag.

A few hours before the announcement of the results of a Europe-wide bank stress tests was the European Central Bank (ECB) the green light to the plan, with the oldest bank in the world wants to get rid of by the end of their bad loans.

the ailing bank crisis intention to deliver far more than half of their bad loans. In total € 27.7 billion of these loans are to be sold at a price of 33 percent of their book value, explained CEO Fabrizio Viola.

the end of June the institute had good overall 45 billion euros are bad loans on their books. Thus, the bank would get rid of in one fell swoop more than half of them and take about 9.2 billion euros. Among other things, this Italian bank rescue fund help Atlante.

Also a much-needed capital increase of up to five billion euros is in the bag, as the news agencies Reuters and dpa report unanimously. A consortium of Italian and foreign banks secures the stock offering.

rescue was a race against time

In a solution of the Tuscan bank would have threatened the settlement. Montepaschi is likely due to the multi-billion dollar risks on its balance sheet to the banks include that in the stress test worst performing (read here what Italy’s banking crisis for German investors means). The rescue was therefore a race against the clock. Freed from the potentially impaired loans and recapitalize would the bank claims to be on a stable core capital ratio of 11.4 percent.

In the hope of a solution, the shares of the Institute had gained more than six percent on Friday , Nevertheless, the Bank, which started eight billion euros in fresh capital in the past two years, worth on the stock exchange in Milan just EUR 900 million. Other Bank title put Europe firmly on.

The Italian government had been pushing for a solution for Montepaschi with private capital. In a state rescue under the new rules for the settlement of banks in Europe and the creditors would have lost some of their money. The Bank of Siena has sold bonds over five billion euro mainly to private individuals. Failure would not only cast a bad light on the already ailing Italian banking system, but also brought Prime Minister Matteo Renzi under pressure coming even from Tuscany.

Lazy loans due to years of economic crisis

The plan for the Bank had investment banks JP Morgan and Mediobanca elaborated. They wrestled until Friday afternoon to other financial institutions that share the risk that the new shares of Montepaschi not find enough other buyers. Some institutions – such as UniCredit – they got refusals. The capital increase will go to the end on the stage.

The bad loans are a result of years of economic crisis in the country, which gnaws also on the capital base of other institutes. Italian financial institutions are sitting on bad loans in the total volume of around 360 billion euros. With tension was expected, therefore, how to cut the five Italian banks in European stress test. Already in 2014 they had beaten the worst. Italy had not grasped its banks in the financial crisis under the arms.