According to comprehensive information from WorldWay: On October 26, the Latvian News Agency reported that the European Central Bank (ECB) announced the results of the comprehensive assessment and stress test of the Eurozone banking sector that day. The three major Latvian banks—Swedbank (Latvian branch), SEB Bank (Latvian branch), and ABLV Bank—all passed the test. The head of the Latvian financial regulatory authority expressed satisfaction with this outcome.
The European Central Bank's assessment and testing formally began in October 2013 and was based on data as of the end of 2013. The main criteria for the stress test were that banks must maintain a minimum Common Equity Tier 1 capital ratio of 8%, and a minimum of 5.5% in the event of extreme economic deterioration. A total of 130 significant banks in the Eurozone were assessed and tested, 25 of which failed the stress test. (Economic and Commercial Counselor’s Office of the Embassy in Latvia)
WorldWay Editor
