In order to strengthen the capital base of European banks given the shadow cast by the European sovereign debt crisis, on 26 October 2011 the European heads of state or government adopted a bank recapitalisation programme for the member states of the European Union. In light of the exceptional market situation, the programme is designed to restore the confidence of investors in banks’ ability to withstand further shocks.
In November 2011, the EBA worked together with the national supervisory authorities in coordinating the collection of data and the calculation of the capital needed by the 71 banks surveyed. Germany was represented by the the same 13 banks that had already been surveyed as part of the EU-wide stress test in the summer of 2011.
Results per bank
The recapitalisation needs of the surveyed German banks have been calculated as totalling €13.1 billion, with six of the 13 credit institutions reporting a shortfall. Around 65% of this national capital shortfall is accounted for by two institutions: Commerzbank which has a capital requirement of €5.3 billion and Deutsche Bank, which requires funding in the amount of €3.2 billion. More-over, the Norddeutsche Landesbank, the Landesbank Hessen-Thüringen, the DZ Bank and the WestLB all report capital shortfalls.
| Name of the bank | Core Tier 1 Ratio per 30.09.2011 | Capital required; € Million *) |
|---|---|---|
| Total | 13,107 | |
| Bayerische Landesbank | 10.0 % | 0 |
| Commerzbank AG | 8.8 % | 5,305 |
| DekaBank Deutsche Girozentrale | 9.6 % | 0 |
| Deutsche Bank AG | 8.3 % | 3,239 |
| DZ Bank AG | 9.2 % | 353 |
| HSH Nordbank AG | 9.6 % | 0 |
| Hypo Real Estate Holding AG | 27.9 % | 0 |
| Landesbank Baden-Württemberg | 9.1 % | 0 |
| Landesbank Berlin AG | 13.8 % | 0 |
| Landesbank Hessen-Thüringen | 6.3 % | 1,497 |
| Norddeutsche Landesbank | 6.0 % | 2,489 |
| WestLB AG | 8.5 % | 224 |
| WGZ Bank AG | 10.2 % | 0 |
*) Capital required to reach the 9 % Core Tier 1 capital buffer (accounting for the sovereign capital buffer)
Full tabular overview of the results (only available in German, pdf/7 KB)