Luxembourg's BCEE, a model student
(ADW) Luxembourg's Banque et Caisse d'Epargne de l'Etat (BCEE) has once again passed the European bank stress test with flying colours.
No less than 64 banks across Europe had been put under the European Banking Authority's microscope and subjected to their so-called “stress test”.
The Luxembourg financial institution had, on June 30, a liquidity ratio of 16.3 percent (in December 2012 it was 15.2 percent), which is well above the prescribed value of 9 percent.
The stress tests are designed to -
- uncover any weaknesses that might have existential implications in a real market failure,
- verify the robustness of core capital ratios,
- and disclose effects of liquidity on the institutions concerned.
The BCEE was the only bank in Luxembourg examined in the stress test.