Pressure test is passed to UK Banks still open champagne
The European banking pressure released weekend testing results show that the bank all through the “physical”.Britain’s banking industry, which shows overall health.”This makes this week two trading U.K. Banks generally to rise, some bank shares rose significantly.But the bank of England from breathing “to premature.
European Banks to pressure testing, mainly is whether it can withstand test during the economic agents and sovereign debt crisis of the double blow.The test of the bank, in a high proportion of 91 Banks in test only seven home, but not through is smaller Banks.Therefore, the “physical” the question.Partial observers, testing, inspection standards of low pressure with the real ability bank crisis.However, because of this problem is very complex, difficult to have them.
However, the European banking “health check” hope to reach the goal at the moment is realized basically: as far as possible to boost the European banking market confidence and prevent new debt default agitation.European stocks rose for two days, bank shares surge.At the same time,euroandsterlingfordollarThe exchange rate of different degree is stronger.
In recent months, several European countries and the European banking suffered serious impact sovereignty debt crisis.If a new crisis occurred again and lead to economic agents, the second European economic and banking industry will face is very dangerous situation.British times published data shows that prediction.If economic agents and scale of secondary and severity and the crisis is the second biggest sovereign debt crisis, Britain’s four commercial Banks as the loss will 11.9 billion pounds ($1.5 pounds (1), is almost five years of profit in a normal year.Among them, the biggestHSBC holdingsCompany’s assets loss will be $390 million pounds, barclays bank will lose 210 billion pounds, but now the government is part of the taxpayer money to plug the royal bank of Scotland and holding bank asset losses will be $3.4 billion respectively, and 250 million pounds.If this hypothesis, to Britain’s economic and financial industry is a great disaster.
Britain’s banking industry, which has just “back”, the royal bank of Scotland and bank is expected to return to this year, “Britain” four Banks throughout the year, total profit is only 220 million pounds.Therefore, vigorously carry on banking market confidence of
All the “physical” qualified and science-induced positive market reaction seems to make Britain’s major Banks top temporarily “breathing”.However, this crisis caused many problems still worth the Banks and bank regulators ponder, for example, how to keep the banking financial robust, how to strengthen financial supervision, how to prevent some institutions for excessive profit in risk management and control system etc. ExtinctionAt this point, the city of London is far from bank giants, but should reflect slack past, strengthen self-discipline, assume responsibility.