2014年-EBA欧洲银行管理局_EBA-BS-2012-149--recap-report-to-be-published-11-July--FINAL_9页_405kb

Summary of the EBA's 2011 Capital Plan Implementation Update

Core Content

The European Banking Authority (EBA) issued a Recommendation in December 2011 requiring participating EU banks to raise their Core Tier 1 (CT1) capital ratio to 9% after accounting for an additional buffer against sovereign risk holdings. This was aimed at restoring market confidence in the EU banking sector, especially in light of financial stress in sovereign debt markets. The Recommendation was not based on a stress test or asset quality review, but rather on a need to ensure resilience against potential credit shocks.

A total of 71 EEA banks participated in the capital exercise, with 27 banks initially reporting a capital shortfall of €76 billion. These banks submitted capital plans to National Supervisory Authorities (NSAs) in coordination with the EBA, and the plans were discussed in supervisory colleges to address concerns related to their jurisdictions and credit markets. For banks without a college, bilateral discussions between the EBA and NSAs ensured clarity on the measures and their implications.

As of 30 June 2012, the 27 banks had reported a recapitalisation amount of €94.4 billion, indicating they were on track to meet the EBA Recommendation. The capital increase was primarily achieved through direct capital measures, such as new equity issuance, retained earnings, and the conversion of hybrid instruments into common capital, representing 76% of the total recap amount. RWA reductions contributed 24% to the capital enhancement.

Key Measures and Outcomes

Direct Capital Measures

• New ordinary shares and retained earnings: 27 banks increased their core capital by €41 billion since September 2011.
• Hybrid instruments conversion: By 31 October 2012, an additional €6.4 billion was added to core capital.
• Total core capital increase: €47.4 billion by 31 October 2012, a 12% increase from September 2011.
• Buffer Convertible Capital Securities: €11.5 billion issued, contributing an additional 2.9% to capital.
• Other mitigating measures: €12.6 billion impact from various actions, including asset disposal and model changes.

RWA Reduction Measures

• Deleveraging: Reduced RWAs by €30.3 billion, or 0.62% of September 2011 RWAs.
• Asset disposals: Led to a capital gain of €8.1 billion and a reduction in RWAs by €90 billion, or 1.8% of September 2011 RWAs.
• Internal model changes: Validated and rolled out changes to reduce RWAs, but only where already planned and approved.
• Collateral improvements: Reduced RWAs by €30.6 billion, or 0.62% of September 2011 RWAs.

Government Support and Backstops

Government backstops were crucial for some banks to meet the 9% CT1 target. These were subject to common principles, including transparency and clear timelines. The EBA was allowed to reference these timelines in its September report.

• Portugal: Three banks (Caixa Geral de Depositos, Banco Comercial Portugues SA, and Banco BPI SA) received government support, with €1.65 billion, €3 billion, and €1.5 billion injected respectively.
• Slovenia: Nova Ljubljanska Banka d.d. received €0.32 billion from the Slovenian government.
• Italy: Banca Monte dei Paschi di Siena (MPS) received government support of up to €2 billion through a Decree-Law.
• Cyprus: Bank of Cyprus and Cyprus Popular did not meet the target through private market actions but received reassurance of EFSF support.

Remaining Banks and Future Steps

• Nova KBM d.d.: Initially above the 9% target, but later reported a shortfall due to additional credit risk impairments. It submitted a capital plan and is expected to meet the target by September 2012.
• Norddeutsche Landesbank -GZ: Achieved the 9% CT1 by end of June, pending formal endorsement by the EU Commission.
• Bankia: Undergoing restructuring as part of the Spanish government's request for EFSF support. The EBA is involved in the asset quality review process for Spanish banks.

Conclusion

The capital exercise was a one-off initiative to restore market confidence and ensure the resilience of the EU banking system. While most banks have met the EBA's CT1 target, the process involved significant capital injections and structural adjustments. The EBA and NSAs have been monitoring the implementation closely, with a final assessment expected in September 2012 based on comprehensive data from the banks' financial statements. The exercise has strengthened the capital base and improved access to market funding, with further steps required to ensure long-term stability.