Banks: 150 billion euros to raise
Railing against the bank stock values! The optimism generated by the publication of stress tests, although much criticized, July 23 last, has fizzled. On Tuesday, the four banking stocks in the CAC 40 posted the largest declines, causing the decline of main index of the Paris stock exchange. Thus, half sitting, Dexia lost 2.35% to 3.29 euros, Societe Generale was down 2.21% to 43.34 euros, Credit Agricole coward 2.15% 10.71 euros and BNP Paribas abandons 1 69% to 52.99 euros.
Public debt dumped
Doubts about the credibility of these stress tests is increasing. On Tuesday, while the Basel Committee should meet to finalize the criteria for bank capital adequacy, the Wall Street Journal estimates that the amount of government debt securities held by certain financial institutions have been underestimated.The American newspaper cites the Barclays and the French Credit Agricole.
According to the Bank for International Settlements (BIS), French banks held on 31 March, 35 billion euros of debts of the Spanish State and 20 billion euros of debts of the Greek state. According to stress tests, Credit Agricole, Natixis, BNP Paribas and Societe Generale, held only 6.6 billion euros (Spain) and 11.6 billion (Greece).
"This will destroy the growth"
After going up the slope after the publication of "stress tests", so worried about banking stocks to new investors. It must be said that it is enough. Guests on BFM Radio Tuesday morning, the President of the Board of BNP Paribas, Michel Pebereau, did not pull any punches."The" wise men "Basel III asks us to do in less than two years, what we have done since the existence of BNP Paribas," he says. In other words, raising 150 billion euros to double the capital of French banks. "These measures are unreasonable, he says. They will drain the interbank market (the market where banks lend to each other, Ed) and destroy the growth that is already not high. The regulator is in the direction he had just avoided.
While Germany had declared Friday that it would not oppose the tightening of international credit rules, the German banking federation announced Monday that the ten largest German banks, whether the measures were Basel III maintained, would raise 105 billion euros.
The Basel Committee, responsible for this case, should require financial institutions to show a Tier 1 capital ratio (capital tier one "is the core capital base of financial institutions, Ed) of at least 6 %, said the federation. But a mattress extra 4% would be required, 2% to preserve capital and 2% for "counter-cyclical capital (capital raised by banks to cope with sluggish growth, Ed).
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