BEIJING (MNI) – Deutsche Bank has agreed to publish later today
details of its sovereign debt holdings, bowing to pressure from
shareholders and European bank regulators to do so, the Financial Times
reported Tuesday.
The Committee of European Banking Supervisors (CEBS) published late
Friday its stress tests of European banks, showing that only seven of 91
institutions failed the test of adequate capital, with a combined
capital shortfall of Eur3.5 billion. But the number of institutions that
failed the test, and the combined capital shortfall, were well below
market estimates.
As part of the test procedure, all banks agreed to release details
of their sovereign debt holdings, the CEBS said. However, six German
banks, including Deutsche Bank, failed to do so.
Separately, Citigroup estimated Monday that if the CEBS had
stress-tested European banks’ entire sovereign debt holdings, rather
than just those instruments on their trading books — meant for
short-term holdings — 24 banks would have failed, with a combined
capital shortfall of Eur15 billion ($19.5bn), the FT said.
European banks hold most of their sovereign debt securities in
their hold-to-maturity accounts, which were not included in the CEBS
stress test.
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