2023-07-28 18:58:57
The big Spanish banks, Santander, BBVA, Caixabank, Sabadell, Bankinter, Unicaja, Abanca and Kutxabankhave exceeded solvency test (stress test) performed by the European Banking Authority (EBA, for its acronym in English). He Bank of Spain It stands out that this group of entities shows a “strong staying power” and “maintains satisfactory capital levels in the adverse scenario, more severe than in the previous year.”
Despite currently having the lowest capital levels in the European Union (EU), Spanish banks are the ones that best resist a hypothetical stress scenario in which the economy would enter a deep recession and interest rates would skyrocket.
Below the average of 10.4% in the worst case scenario at the European level, and with a ratio of less than 10% in 2025, are the banks of France and Germany, as well as the Netherlands and Spain. But the Spanish banks are among those that destroy less capital.
Under this assumption of crisis, Santander It is the most solvent of the large Spanish banks, with a capital that would be at 10.33%, while on the opposite side, with the tightest ratio, would be Sabadell, with 8.81%. Among the different Spanish entities that participate in the test, eight in total, there are differences and Kutxabank It would have the highest ratio, 15.26% in the worst case, which places it as the most solvent, above Santander.
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Below are bankinterwith 10.28%; Unicaja Bank, with 9.72%; he BBVAwith 9.66%; CaixaBankwith 9.35%; bankwith 9.20%, and in last place, the Sabadell.
One of the conclusions is that the large European banks has enough capital to overcome a crisis. In the most pessimistic scenario, the 70 financial entities analysed, which represents around 75% of the sector, would suffer a deterioration of 459 basis points in their solvency, which would reduce the CET1 capital ratio to an average of 10.4% by 2025 from the starting 15% at the end of 2022with combined losses of 496,000 million euros.
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