EBA stress test: capital levels of largest banks operating in Finland remained good also in stress scenario
OP Financial Group's Common Equity Tier 1 (CET1) ratio remained at a good level also in the adverse macroeconomic scenario. In the stress scenario, the ratio of CET1 to risk-weighted assets in the capital adequacy assessment was 14.9% at the end of 2018, which was better than the average for the other tested entities. Compared to the initial ratio (19.5%), OP Financial Group's capital depletion in the stress scenario was greater than average.
In the stress test, the Nordea and Danske Bank Groups were assessed as a whole, and their CET1 ratios also remained at good levels in the test. At the end of the stress scenario, the CET1 ratio of Nordea was 14.1% and that of Danske Bank was 14.0%.
OP Financial Group participated in the 2016 stress tests of the European Banking Authority (EBA). Nordea Bank Finland Plc (a member of the Nordea Group) and Danske Bank Plc (of the Danske Bank Group) participated in the exercise via their parent companies.
In the stress test, the banks' capital adequacy was tracked up to the end of 2018 in two different scenarios: the baseline scenario and the adverse macroeconomic scenario.
In total, 51 banks from 15 EU and EEA countries participated in the stress test. OP Financial Group here refers to the amalgamation of deposit banks whose central institution is OP Cooperative.
For further information, please contact:
Marja Nykänen, Deputy Director General, tel. +358 10 831 5247.
See also
- EBA press release
- EBA stress test result pages
- ECB press release
- OP Financial Group press release
- Nordea press release
- Danske Bank press release