EU-wide bank recapitalisation exercise
Results for German banks
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. In the meantime, though, WestLB has been broken up and is therefore no longer affected by the recapitalisation recommendation.
After deduction of the "sovereign capital buffer", all 12 German institutions in the sample achieved the minimum core tier 1 capital ratio of 9% as at 30 June 2012. The average ratio is 10.7%, which means all institutions taken together exceed the EBA minimum capital requirement by €15.5 billion. The five banks which were found to need an additional €12.9 billion as at 30 September 2011 have covered this requirement.
Results per bank
According to the Recommendation issued by the European Banking Authority’s (EBA) regarding banks’ recapitalisation, participating institutions were to have a core tier 1 capital ratio less the sovereign capital buffer, expressed in terms of risk-weighted assets, of at least 9%. The sovereign capital buffer is the capital buffer for fair value losses on exposures to member states of the European Economic Area. All German banks participating in the recapitalisation exercise achieved this capital ratio.
|Name of the bank||Core Tier 1 Ratio 30.09.2011||Core Tier 1 Ratio 30.06.2012|
|Bayerische Landesbank||10.0 %||10.3%|
|Commerzbank AG||8.8 %||12.2%|
|DekaBank Deutsche Girozentrale||9.6 %||11.7%|
|Deutsche Bank AG||8.3 %||10.2%|
|DZ Bank AG||9.2 %||11.6%|
|HSH Nordbank AG||9.6 %||10.0%|
|Hypo Real Estate Holding AG||27.9 %||21.6%|
|Landesbank Baden-Württemberg||9.1 %||9.9%|
|Landesbank Berlin AG||13.8 %||12.7%|
|Landesbank Hessen-Thüringen||6.3 %||9.8%|
|Norddeutsche Landesbank||6.0 %||9.5%|
|WGZ Bank AG||10.2 %||10.4%|