Thanks a lot Roxbury for the link and the Executive Summary. Saved a lot of stress you could say. If I were an institutional investor with a niche in my portfolio right now requiring medium-low risk in european financials sector, I'd be in like Flynn at the bell tomorrow morning. "Banking" on good November IMS too.
The value the banks are putting on their assets looks like been the most important factor in how share prices react tomorrow. At this stage it looks like 25 banks will fail the stress part of the tests. As the tests were done at the end of 2013 that information is some what historic and at least 15 of the 25 have shored up their capital base over this year. That leaves 10 needing to raise money including pstb (probably around 400mil).
Its unclear when the final assets quality review was finalised but we know the banks here provided the ecb with alot of paper work in the past couple of months. The closer to today the valuation took place the better in bkirs case. Irish property prices have been rising steadily all year. Boi have not moved to write back any gains so should have a good buffer as regards residential property prices. It may come down to sme loans and trackers as to how well their report card looks.
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