68 Small and Medium-Sized German Banks Fail National Stress Test
- Test by Bundesbank, BaFin, didn’t factor in contagion effects
- Bundesbank’s Dombret says more information on mortages needed
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Almost 5 percent of small and medium-sized German banks missed regulatory capital requirements in a stress test conducted by Germany’s two top financial watchdogs.
The impact of the simulation carried out by the Bundesbank and BaFin would have been higher if the stress test had factored in contagion effects, Bundesbank board member Andreas Dombret said at a press conference in Frankfurt. He presented the results of the survey of about 1,500 banks together with Raimund Roeseler, executive director for banking supervision at BaFin.