Top Swedish banks pass EU stress test -watchdog

STOCKHOLM, July 23 (BestGrowthStock) – Sweden’s financial watchdog
said on Friday the country’s four biggest banks all passed a
European Union stress test, saying they were strong enough to
withstand another economic downturn.

Sweden’s Financial Supervisory Authority said in a statement
that Nordea (NDA.ST: ) — the Nordic region’s biggest bank — SEB
(SEBa.ST: ), Handelsbanken (SHBa.ST: ) and Swedbank (SWEDa.ST: ) all
passed the test “with a comfortable margin”.

“The major banks have enough capital to weather even more
severe scenarios than what was assumed in this stress test.
Thus, there is currently no need for any of the major banks to
strengthen their capitalisation, from a regulatory perspective,”
it said.

“However, in extreme scenarios the market may require even
higher capital ratios, which requires the banks to have capital
contingency plans even for highly unlikely scenarios.”

Sweden’s financial watchdog conducted the test on behalf of
the Committee of European Banking Supervisors, the group
presiding over the test of 91 lenders across the region.

Capital ratios at the Swedish banks, which have limited
exposure to sovereign debt in southern Europe, are among the
highest in Europe.

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Top Swedish banks pass EU stress test -watchdog