Stress Test on capital ratio for the largest Icelandic banks e.o.y. 2006

21.3.2007

The FME has calculated the effects of simultaneous shocks on capital ratios of the largest Icelandic banks as described in Rules No 530/2004, with later amendments. The shocks implies that a financial undertaking must be in a position to take on certain setbacks that simultaneously may lead to changes in the value of shares, market bonds, non-performing/impaired loans and appropriated assets and the Icelandic krona without having its capital adequacy ratio drop below 8%.
The effects of aforementioned simultaneous shocks on capital ratio are following as of e.o.y 2006 and end of June 2006:

The criteria used in the stress tests is available under this link.

Back


Language


This website is built with Eplica CMS