ÖVAG Participates in the Stress Test
Unlike last year, the Austrian Volksbanken group (ÖVAG) is to participate in the EU-wide stress testing of banks. 5% equity is assumed as lower limit.
In addition to the Erste Group and Raiffeisen Bank International, this year ÖVAG is also participating in the stress test for banks. Bank Austria has been examined within the frame of the parent company UniCredit. Austrian banks were found to be in the middle of the rankings, partly also below average. The stress test revealed at any event, the high capital requirement of Austrian banks. State aid is not considered for the definition of the core capital ratio. Both RBI and Erste Group still hold state capital participation.
A total of about 90 banks are tested for their crisis resilience. The central criterion is the core capital ratio: a minimum ratio of 5% was determined. The hurdle of 5% is not a legal criterion; it is however expected that emergency measures will be adopted by the European Banking Supervision (EBA) when the ratio falls short of this value.