RE: There goes Christmas..17 Dec 2019 12:14
This could be the reason for this mornings drop, taken from Davy. There is a more detailed version on Goodbodys morning note. PS Now almost €0.20 off to-days low
UK banks pass Bank of England stress test; CCyB to increase from 1% to 2%
That all UK banks included in the 2019 Bank of England (BOE) stress test passed should not come as a surprise given the parameters were broadly the same as 2018. Increasing the counter cyclical capital buffer (CCyB) is a surprise, however, and will, in our opinion, constrain capital returns in the UK sector. It also negatively impacts both BOI and AIB, already facing the prospect of a systemic risk buffer. As a result, we increase our management target to 13.5% (from 13%) and 14% (from 13.5%) for BOI and AIB respectively.