Bank Solvency

After the Banking crisis of 2008, how secure is your business Bank?

In 2008 the UK government bailed out several Banks including RBS and Lloyds, however businesses and charities with deposits with Iceland's banks suffered badly.  Clearly businesses need to watch more than just the Interest rate when placing funds on deposit.

UK Banks - the Stress Test results:

The EU Bank Stress Test results were announced by the European Banking Authority in July 2011 indicated that all the main UK Banks 'passed' the test (ie. over 5% ratio), with the results for key Tier 1 capital ratios showing:

• RBS          6.3%
• Barclays    7.3%
• Lloyds       7.7%
• HSBC       10.5%

Non UK Banks which failed the stress test include 2 Greek, 3 Irish and 9 Spanish Banks.

The full list of EU banks which did not pass the 2011 Stress Test were:

• Austria - OESTERREICHISCHE VOLKSBANK AG
• Cyprus - BANK OF CYPRUS PUBLIC CO LTD
• Germany - NORDDEUTSCHE LANDESBANK -GZ
• Greece - AGRICULTURAL BANK OF GREECE S.A. (ATEbank)
  • EFG EUROBANK ERGASIAS S.A.
• Ireland - BANK OF IRELAND
  • ALLIED IRISH BANKS PLC
  • IRISH LIFE AND PERMANENT
• Italy - BANCA MONTE DEI PASCHI DI SIENA S.p.A
• Portugal - BANCO COMERCIAL PORTUGUES, SA (BCP OR MILLENNIUM B
• Slovenia - NOVA LJUBLJANSKA BANKA D.D. (NLB d.d.)
• Spain - CAJA DE AHORROS DEL MEDITERRAÅLNEO
  • BANCO PASTOR, S.A.
  • GRUPO CAJA3
  • CAIXA D'ESTALVIS UNIO DE CAIXES DE MANLLEU, SABADELL
  • CAIXA D'ESTALVIS DE CATALUNYA, TARRAGONA I MANRESA
  • CAIXA DE AFORROS DE GALICIA, VIGO, OURENSE E PONTEVE
  • BFA-BANKIA
  • GRUPO BANCA CIVICA
  • GRUPO BM

Bank Funding?

More on sourcing Bank Funding.  See our newsletter on 'Where to Hunt for Funding?'

vfdnet part time Finance Directors have extensive experience of arranging bank finance and negotiating the best deal your business. Contact us for a no obligation free discussion on how we can help you.

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