Børsens News Service in English
Satisfaction After Danish Banks Pass Stress Test
27-07-2010
12:59
Both the Financial Services Authority (FSA) and the banks themselves have expressed satisfaction that all three of the nation’s large financial institutions – as well as the Sweden-registered Nordea - were given the green light in the EU’s recent financial stress tests. Not only were the Danish banks given approval, they were deemed more financially secure than many of their foreign rivals.
According to the results, none of the three Danish banks will need further capital injections during the period covered by the test under a variety of economic scenarios.
"The Danish banks did really well”, Julie Galbo, deputy director of the FSA, told RB Børsen. “They were also well when compared to the rest of Scandinavia,"
“My expectation is that the Nordic banks will do well in a European context,” Danske Bank CFO Tonny Thierry Andersen said. “Partly because none of them are particularly exposed to the south European markets, and partly because they are well-capitalized."
"I'm not sure that it is necessarily bad [that some European banks failed the test]” Andersen added. “I would actually say the reverse. If everyone passed people would say that the test was it would be bad for test, so people would say that the test was too soft”.
The seven banks that failed were German’s Hypo Real Estate, Greece’s ATE and five Spanish banks: Cajasur and Banca Civica, Caja Duero, Caixa Sabadell and Caixa Catalunya
According to the results, none of the three Danish banks will need further capital injections during the period covered by the test under a variety of economic scenarios.
"The Danish banks did really well”, Julie Galbo, deputy director of the FSA, told RB Børsen. “They were also well when compared to the rest of Scandinavia,"
“My expectation is that the Nordic banks will do well in a European context,” Danske Bank CFO Tonny Thierry Andersen said. “Partly because none of them are particularly exposed to the south European markets, and partly because they are well-capitalized."
"I'm not sure that it is necessarily bad [that some European banks failed the test]” Andersen added. “I would actually say the reverse. If everyone passed people would say that the test was it would be bad for test, so people would say that the test was too soft”.
The seven banks that failed were German’s Hypo Real Estate, Greece’s ATE and five Spanish banks: Cajasur and Banca Civica, Caja Duero, Caixa Sabadell and Caixa Catalunya
*****||*****Satisfaction After Danish Banks Pass Stress Test *****||*****Both the Financial Services Authority (FSA) and the banks themselves have expressed satisfaction that all three of the nation’s large financial institutions – as well as the Sweden-registered Nordea - were given the green light in the EU’s recent financial stress tests. Not only were the Danish banks given approval, they were deemed more financially secure than many of their foreign rivals.*****||*****
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