March Bank | European banks have passed the stress tests with good marks, so 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 ability of banks to cope with an adverse economic scenario, concluded that the health of the European financial sector is satisfactory. Thus, after analyzing some fifty of the largest banks on the continent, the average capital measured by the unloaded CET1 ratio – that is to say the capital invested in relation to the assets weighted according to the risks – is rises to 10.2%.
In Spain, the ratio is slightly below average, at 8.95%. Among the four national institutions analysed, 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 the EBA the worst performance was that of Banco Sabadell, which would reach 2023, the end of the period analysed, with a ratio of 6.5%, ahead of only the Italian Monte dei Paschi and HSBC. Following these results, European banks are preparing to resume their pre-pandemic shareholder remuneration policies as of September 30.