The Association of German Banks regards the tougher EU-wide bank stress test scenario for 2011 as an appropriate measure. “The benchmark is higher in many respects than last year,” said Michael Kemmer, the association’s general manager. “The criteria have been toughened considerably in some cases, and that is a good thing.”
The sssociation welcomes that the European Banking Authority (EBA) regularly measures the resilience of the EU banking system by means of stress tests.
At the same time, the results should not be overrated. “The stress tests give supervisors important information about the banking system, but they don’t say whether individual banks have a sustainable business model,” Kemmer added. The results therefore had to be prepared very carefully to avoid producing unwanted side effects. “We should thoroughly analyse the results and examine which measures are necessary on a case-by-case basis.”
As the stress test scenario was a hypothetical one, it would, however, be fundamentally wrong if the results were to automatically trigger action resulting in higher capital requirements for banks.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.