An English presentation about stress tests

1. Stress tests ResitEnglish 2009-2010 Pieter Coenen 2FV

2. Table of contents Introduction What are stress tests? Expectations Results Criticism Reaction Outro

3. Introduction 2008 crisis and reforms

4. What? CEBS ‘whatif’ scenarios Europeaneconomy -3% in comparison to forecast Fall of prices of governmentbonds Tier onecapital ratio of 6% Why?

5. Expectations = or >10 out of 91 failingbanks Spain, Greece and Germany

6. Results Friday 23 July No stock exchange 7 banksfailed Spain: Diada, Espiga, BancaCivica, Unnim and Cajasur Greece: ATEbank Germany: Hypo Real Estate

7. Results Fairlygoodresults Low shortage of capital: 3 bnpounds Small/regionalbanks Excuses Situation in Spain Greece Germany UK

8. Results Remarks Government support See “Criticism” Goodornot? Dependingonreactionon stock exchange market

9. Criticism Tier onecapitalor core capital? 6%= enough? Fall in price of governmentbonds = enough?

10. Reaction Currency Higher bank shares UK France Spain, Greece and Germany

11. Outro Conclusion Thankyouforyourattention