Banks face "tougher" stress-tests

8 April 2011, last updated at 15: 30 GMT Allied Irish Bank had to be rescued out after passing the test Europe regulator banking which has said that banks of strict tests in its latest review of their finances to be.

It contains some Irish banks, including one that passed the last year's test, but later a Government needed Bail-Out.

The regulatory authority would like to make sure that banks have to resist enough capital more difficult economic scenarios.

The new tests include 90 banks including Royal Bank of Scotland, HSBC, Barclays and Lloyds banking group.

Barclays mentby earlier it record euro ($1 billion; £ 1.1 billion) to improve his Spanish Division their reserves after Government stress tests in Spain.

Stricter tests

In the 90 contain some banks are not tested before - such as the Irish Republic Irish life & permanent (IL & P) and two Norwegian banks.

IL & P ordered billion to increase euro last month after Government stress tests in the Republic.

Many banks are previously tested again, such as Allied Irish Bank contain. It was passed last time, but later a Government needed Bail-Out.

The tests described the European banking authority (EBA) examine how banks would fare economic conditions should deteriorate further.

"The scenarios are provided by the EBA strict," said Peter Hahn CASS business school, BBC News.

These include a European recession and a decrease of 15% in the European equity markets.

"they definitely more credible this time as last time;" "be it could be worse", said Mr Hahn.

Standard not tested, but despite widespread concern to pay countries skills were back, which will not look at their debts, the test what would happen, each country standard.

In all cases, banks should maintain a quota to a 5% animal. The term refers to reserves that could use banks to cope with losses.

At least 10% in the reserve, ceased said to ensure that they have banks in the United Kingdom, while the new Basel III international rules say that banks must hold 7% from 2013.

Certain forms of possession some German banks can not counted which means this time - that they may have extra cash to increase.

Boost cash

A survey of investment bank Morgan Stanley found that less than 10 banks were expected to not the test.

Those who do increase capital to sell assets or to reduce their loans.

Banks, who fear that they fail the test are expected to be in advance to raise money.

Three banks, Germany's Commerzbank, Italy Intesa Sanpaolo and Banca Monte dei Paschi di Siena have already announced, reserves, plans to increase their capital.

The results of the test are expected in June.

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Irish banks need additional reinsurance segment euro

March 31, 2011 last updated at 20: 56 GMT Patrick Honohan, Governor of Ireland's Central Bank announces reinsurance segment euro ShortfallThe Republic of Ireland banks need to survive an additional reinsurance segment euros (£ 21 billion), the financial crisis.

The figure follows a stress test on the Irish banking system by a group of independent experts and Central Bank of the country.

Four lenders have been tested - Allied Irish banks, Bank of Ireland, educational building society (EBS) and the Irish life & permanent.

Allied Irish banks takes the most money and have to increase 13.5 euro.

Bank of Ireland required 5.2 euro, EBS 1.5 euro and Irish life billion euro.

The total amount in the Irish banks cast, as the financial crisis will newly be euro near 70bn.

Professor Patrick Honohan, Governor of that Central Bank, said: "the new requirements are necessary to restore market confidence, and banks have to meet enough capital to ensure even the markets darkest estimates."

The most important story of

, that the grievous consequence is, that it a lack of capital of £ damage totals in these banks read more... "This is a huge sum for them to find."

Originally posted at the end Robert Peston business editor, BBC News Dublin already has the most Anglo Irish Bank, Allied Irish banks and the EBS after previous save the banks.

Mr Honohan said it was likely that in the context of the next infusion of funds, the other two banks, nationalization - Bank of Ireland and Irish life & permanent - would now have to avoid taken in State control.

Insert money apart from the 85bn euro EU IMF Bail-Out agreed to in November be used to finance the latest recapitalisation.

The banks will be determined six months - unreleased - goals to reduce their huge borrowings in the next few years through a process of asset sales.

Mr Honohan said, however, that the banks should be able to ' fire sales' to avoid that would be thrown by the amount of money from the disposal.

Marchel Alexandrovich, European financial economist, Jefferies international, said the results of the stress tests, which were expected in the financial markets.

"Our first impression is that the question of whether this is enough remains to stay one," he said.

He also pointed that it was on no indication how the banks senior of bondholders, handle, the fear that they may be forced to create greater losses on their loans.

Trading in shares of the banks was suspended for the day to the stress test announcement.

The European Central Bank (ECB) had been expected, a new 60bn euros in the medium term financing agreement, the Irish banks offer to give a reliable source of cash.

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Ireland's 2010 Bail-Out:

Loss potentials from EU22bn of IMF18bn of Irish State pension fund35bn for banks50bn provided for budget deficit

Support for Irish banks:

70bn euro recapitalisation of, of which: 46bn, date24bn after latest stress150bn euro short-term financing, of which tests added: 70bn of Irish Central bank80bn of ECBBut the announcement that announcement was due at the same time as the Irish Central Bank, has been moved now because of the disagreement among the Governing Council of the ECB, according to a report by news agency Reuters.Mortgage Meltdown

Losses in the Irish banking system from collapse of a speculative bubble in commercial real estate have so far surrendered where the banks for the financing of hotels and shopping malls billions were borrowed.

But the latest stressing one emerging housing meltdown instead focused on.

The stress tests assumed that a level already reached a cumulative breakdown of real estate prices by 62% - in some parts of the Republic.

It also adopted the unemployment rate peaking at 14.9%, a projection of some economists as too weak, given the fact that the most recent data is the rate at 14.7% already criticised.

However US asset manager BlackRock provided the Irish Central Bank, the this year's stress tests to verify their credibility increase.

A previous round tests could spot serious problems as regards the banks just before some of them financial support required.

Haircuts

The 70bn euro poured into the banks, almost half of the Irish economy is annual output or about 17,000 euros per Irish citizens - a burden that the Government is considered unacceptable.

The newly elected Taoiseach, Enda Kenny, lenders, banks losses to parts asked was, but this is probably resisted to other European countries are.

In the early stages of the banking crisis in 2009, the Government gave a blanket guarantee for their banks debts.

Newly elected Taoiseach, Enda Kenny, wants lenders to a share of the losses of the banks

The Republic feared European partners a standard of Irish banks one European banking crisis could trigger.

You insisted that Dublin still the guarantee as a condition of last year's Bail-Out - much to the chagrin of the opposition parties to honour, who have now taken by the Government.

But only on the amount of damage euro of banks remaining long-term debts yet the guarantee, to the Irish Central Bank fall under.

There remain around 40 euro debt, potentially a "haircut", forcing creditors - including United Kingdom, to could given us and German banks - losses.

And the Government guarantees and capital injections were also the recipients of 150bn Irish banks euro of short-term financing from the Irish Central Bank and the ECB.

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Riots shut down Bahrain banks

16 March 2011, last updated: 12: 16 GMT the closures came as they all said response to the growing turmoil and security all HSBC and Standard Chartered close their offices in Bahrain.

The decision came as the Bahrain stock exchange because of the State of emergency of the country was shut down.

The stock exchange was not under pressure prior to the conclusion, move in line with other world markets.

But costs of borrowing met the Gulf State a new high on Tuesday, the yield on your nine-year international bond was 6.84%.

The yield is increased by 2.1 percentage points since November, and is trading at a higher level than the much more heavily indebted Lebanon.

It was cut on Tuesday by A - to BBB - rating agency Fitch of the evaluation of the creditworthiness of the Kingdom of two notches so that it only a two hot about the risky "speculative grade" level.

Bahrain has debt outstanding billion - about 40% of its annual economic production - according to data from Bloomberg, of which about $2 billion to repay this year is due $7.

"National security"

Forces which had blocked Bahrain financial district of demonstrators in the streets, taken before the demonstrations were violently divided security targeted on Wednesday morning in the last few days.

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Bahrain compared with other countries in the region, has no major mineral deposits "

end reporter, quoting Simon Atkinson business BBC News of the Bahrain stock exchange decision close" due to the Declaration of the national security in the Kingdom "was made, site of the stock exchange said in a brief statement on your."

HSBC and Standard Chartered quoted the security of its employees for their own decisions, invite to close.

You said that ATM and other automated banking services continued.

They are two of the largest foreign banks in the country, with eleven branches and 834 employees between them.

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