Only Bankinter Exceeds The Average Capital Ratio Of European Banks, 11.2% Compared To 10.2%


Banca March | European banks have passed the stress tests with good marks, so that they are well prepared to withstand a new recession in the region. The European Banking Association (EBA), after the tests it carries out every two years to measure the capacity of banks to face an adverse economic scenario, concluded that the health of the European financial sector is satisfactory. Thus, after analyzing fifty of the continent’s most important banks, the average capital measured by the CET1 fully-loaded ratio – that is , the capital put in relation to risk-weighted assets – stands at 10.2%.

In Spain, the ratio is slightly below the average, at 8.95%. Of the four domestic institutions analyzed, only Bankinter with a ratio of 11.2% exceeded the European average. Santander’s ratio was 9.3% and BBVA’s was 8.7%. According to EBA the worst performance was that of Banco Sabadell, which would reach 2023, the end of the period analyzed, with a ratio of 6.5%, ahead only of Italy’s Monte dei Paschi and HSBC. Following these results, European banks are preparing to resume their pre-pandemic shareholder remuneration policies as of September 30.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.