Deutsche Bank and Commerzbank expected to pass banking stress tests

12 July 2010

Deutsche Bank and Commerzbank are likely to pass the European stress testing, unnamed sources have claimed.

According to Bloomberg, which cited people familiar with the matter as sources, the financial institutions are both set to receive a tier one capital ratio of more than six per cent when the results of the tests are revealed at the end of July.

The tier one ratio is an indicator of financial strength and any banks which fall below this will be required to recapitalise.

Matthias Engelmayer, analyst at GmbH, told the news provider: “In principle, the stress tests are good news for the banking sector, but there’s been some criticism that the scenarios are too weak.

“German political support for the stress tests signaled that the banks would be successful.”

Deutsche Bank is one of 91 financial institutions which will be subject to the stress tests, the Committee of European Banking Supervisors stated earlier in the week.

The results of the test are expected to be officially released on July 23rd.

Meanwhile, Deutsche Bank was named as the Best Global Investment Bank at the annual Euromoney Magazine awards.

By Jim Ottewill

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