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Swedish banks pass EU stress test

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Swedish banks pass EU stress test
09:13 CEST+02:00
Sweden's four main banks are well equipped to withstand the fallout from a financial crisis, according to the results of stress tests carried out on banks in the European Union.

Nordea, SEB, Handelsbanken and Swedbank, along with Denmark's Danske Bank, Jyske Bank and Sydbank and Finland's OP Pohjola all passed the stress test in which 91 European banks were examined by EU authorities to test their ability to resist another crisis.

The Swedish Financial Supervisory Authority (FI) said in a statement on Friday that the Swedish banks had passed the test "with a comfortable margin."

"According to FI, the major banks have enough capital to weather even more severe scenarios that what was assumed in this stress test," the Swedish authority said, adding the test did not change its previous assessment on the banks.

The Danish Financial Supervisory Authority also said the test did not "change the perception of financial stability in Denmark, and hence no new initiatives are called for."

Finland's Financial Supervisory Authority meanwhile said the test "confirmed the good health of the Finnish banking sector," and that the results did "not warrant any special measures for ensuring the stability of the banking sector in Finland."

The London-based Committee of European Banking Supervisors (CEBS) on Friday released results of tests conducted in cooperation with national supervisory authorities and the European Central Bank to reassure investors that European banks stood on firm financial footing.

Hypo Real Estate in Germany, five regional lenders in Spain and a bank in Greece failed the test.

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