26.07.2010
Millennium bcp passed the stress-test
On July 23, 2010 the Committee of European Banking Supervisors published the results of the "stress tests" carried out on 91 banks across Europe. The test was also taken by Millennium bcp, strategic shareholder of Bank Millennium.
These tests assumed a macroeconomic shock including a 2.3% drop in GDP growth in 2011, a rise in unemployment to nearly 13%, higher interest rates and credit risk, a 20% drop in capital markets and a 5% decline in the price of real estate.
The tests set as a minimum a Tier 1 capital of 6% under the extreme economic shock scenario - that is, two full percentage points more than the Bank of Portugal's minimum regulatory level.
In accordance with the tests, Millennium bcp's Tier 1 capital slipped from 9.3% in December of 2009 to 8.4% in December of 2011, under the most adverse scenario - clearly remaining well above the limit set for these stress tests.
In other words, this was a very good result for Millennium, which was the fourth-most resilient bank on the Iberian peninsula and the Portuguese bank with the greatest amount of excess capital, at € 1.568bn.
We hope that this exercise will serve as a basis for renewed client and market confidence in Europe's banks in general, and Portuguese banks in particular.
For further information about the stress test results, please see the Bank of Portugal's website: http://www.bportugal.pt/en-US/Supervisao/Pages/Exercicioeuropeudestresstest.aspx
The tests set as a minimum a Tier 1 capital of 6% under the extreme economic shock scenario - that is, two full percentage points more than the Bank of Portugal's minimum regulatory level.
In accordance with the tests, Millennium bcp's Tier 1 capital slipped from 9.3% in December of 2009 to 8.4% in December of 2011, under the most adverse scenario - clearly remaining well above the limit set for these stress tests.
In other words, this was a very good result for Millennium, which was the fourth-most resilient bank on the Iberian peninsula and the Portuguese bank with the greatest amount of excess capital, at € 1.568bn.
We hope that this exercise will serve as a basis for renewed client and market confidence in Europe's banks in general, and Portuguese banks in particular.
For further information about the stress test results, please see the Bank of Portugal's website: http://www.bportugal.pt/en-US/Supervisao/Pages/Exercicioeuropeudestresstest.aspx