aqr

How many NPLs in the Greek banking sector are also non-recoverable loans?

ATHENS | By Jens Bastian via MacroPolis | The recent presentation of half-year results by the four systemic banks in Greece – National Bank of Greece (NBG), Piraeus Bank, Alpha Bank and Eurobank – brought a mixture of good news and underlying structural challenges affecting the operational capacity of domestic lenders.


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ECB: AQR results will be included in stress tests

MADRID | The Corner | ECB’s upcoming stress tests will have have the AQR findings incorporated (the so-called “join-up”), an element that was previously missing. And banks will be informed of the full and final results only shortly before they are communicated to the markets, as the central bank published on Thursday


Most EU banks expect medium-to-large consolidations within three years

MADRID | The Corner | Banks feel nervous about the upcoming ECB’s AQR and stress tests. Despite the recent waves of capital raises, lenders still don’t know about the amount of expected recapitalization needs, nor how their provisions against loan losses will do. According to a interesting piece by Bruegel (check their graphs), which comments on the recent E&Y European Banking Barometer, almost one in three of the 294 respondents still expecting to raise Loan Loss Provisions. And, as we wrote not long ago, only 8% of respondents anticipate raising additional capital following the exercise, there is an additional 19% of respondents who a capital raise “might” be necessary.


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Biggest EU banks show poorest Q1 results in 5 years

MADRID | The Corner | The first quarter of the year is usually the best for lenders, and yet major European entities are showing the weakest results since Q1 2009:  net profit fell once more (-9% yoy) to a pale EUR 12, according to a report by Deutsche Bank Research. Potentially high litigation costs and the upcoming ARQ and ECB’s stress tests make them eager to strengthen their capital buffers.


AQR fails to address banking woes

MADRID | By J.P. Marín Arrese | The ECB is frantically submitting to scrutiny up to 60% of risk-weighted assets from the 128 biggest banks in Europe. This step stands as its last chance to avoid inheriting former shortcomings and mismatches. When it takes over responsibility for supervision later on this year, it will be blamed for any financial blunder. No wonder it wants to ensure that no nasty surprise lies ahead.