In response to what I understand is some baseless concern in the market about Suq Al Mal's condition, particularly in light of the PIGS crisis in Europe, I'm very pleased to announce that SAM has passed the CEBS "Stress" Tests and will not require any additional capital to continue as a going concern even under the rather dire scenarios used.
Pictured below is the actual testing session which I can tell you was quite stressful. As far as I recall this experience, filling up the test form was the major stress. In case you're wondering, I'm on the right. Sadly, my buddy, KfW, was absent that day. I'm hoping they'll hold a "make-up" test for him.
In any case, I did pass, though my test paper and answers are "top secret".
Most everyone who showed up, passed. No bank left behind as they are reported to say. Well maybe 7. But over a 92% success rate is highly impressive.
In any case, I did pass, though my test paper and answers are "top secret".
Most everyone who showed up, passed. No bank left behind as they are reported to say. Well maybe 7. But over a 92% success rate is highly impressive.
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2 comments:
I rather suspect that the men in Frankfurt "reverse engineered" the tests by seeing what would lead the weakest Landesbanks to fail the test and then setting the bar a little below that level. And while they covered the 90 odd banks making up 65% of the aggregate EU bank balance sheet, I am certain that there are a fair few "black swans" lurking in the other 35%, some of which would be systemically important in their own domestic banking system.
Laocowboy2
The journey is much easier when you know precisely where you want to go.
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