Press Release: Recapitalisation plans for banks subject to EBA stress-testing

On 8 December 2011, the European Banking Authority (EBA) published a Recommendation requiring the main European banks to strengthen their highest quality regulatory capital.

This recommendation stated that the banks subject to EBA stress-testing should increase their capital buffers to reach a Core Tier 1 capital ratio of 9% by 30 June 2012, following a prudent evaluation of sovereign debt exposures reflecting market prices as at 30 September 2011.

Banco de Portugal specified that Caixa Geral de Depósitos, Banco Comercial Português, Espírito Santo Financial Group and Banco BPI should follow the EBA Recommendation.

In line with the schedule defined, those four banks sent their recapitalisation plans to Banco de Portugal on 20 January, in which they specify and justify the means by which they intend to fulfil the Recommendation. Those capitalisation plans will be assessed by Banco de Portugal in liaison with EBA, and, if necessary, with collaboration from the relevant colleges of supervisors.

Banco de Portugal must confirm its acceptance of the capitalisation plans presented and submit them to EBA by the end of February 2012.

24 January 2012