2010 European Union bank stress test

A European Union-wide banking stress test exercise has been conducted by the Committee of European Banking Supervisors every year since 2009. The second instance was performed in July 2010. The Council of the European Union (in its economic and financial – ECOFIN – configuration) mandated that Committee so to do, in the aftermath of the global financial crisis which started in 2007.

Summary of 2010 results by bank

The 2010 test was the second of its kind, which assesses the financial strength of European banks under different adverse scenarios. This was done in co-operation with the European Central Bank, the European Commission and the national supervisory authorities of the member states.

The 2010 results were released on 23 July 2010.[1] Of the 90 banks tested, 7 failed the 6% tier 1 capital ratio threshold: five in Spain (Unnim, Diada, Espiga, Banca Cívica, and Cajasur), one in Germany (Hypo Real Estate), and one in Greece (ATEBank).[2]

Bank Member state Tier 1 capital/MEUR Assets/MEUR Tier 1 ratio/% Benchmark/% Adverse/% Shock/% Additional capital needed/MEUR
Erste Group Bank AG Austria 11486 125486 9.2 10.4 8.1 8.0
KBC Bank Belgium 13440 123225 10.9 12.2 9.79 9.4
Dexia Belgium 17573 143170 12.3 13.4 11.2 10.9
Cyprus Popular Bank Public Co Ltd Cyprus 2411 25622 9.4 10.0 8.5 7.1
Bank of Cyprus Public Co Ltd Cyprus 2533 24065 10.5 10.9 9.4 8.0
Danske Bank Denmark 15874 135510 11.7 11.7 10.8 10.0
Jyske Bank Denmark 1817 13494 13.5 14.1 12.8 12.5
Sydbank Denmark 1374 10470 13.1 14.8 13.4 13.2
OP-Pohjola Group Finland 5227 41480 12.6 13.4 12.5 12.3
BNP Paribas France 62910 620714 10.1 13.4 12.5 12.3
Crédit Agricole France 52405 538903 9.7 10.6 9.2 9.0
BPCE France 37574 411135 9.1 10.2 8.7 8.5
Société Générale France 34693 324080 10.7 11.9 10.2 10.0
Deutsche Bank AG Germany 34406 273477 12.6 13.2 10.3 9.7
Commerzbank AG Germany 29521 280133 10.5 10.5 9.3 9.1
Hypo Real Estate Holdings AG Germany 7613 80966 9.4 7.8 5.3 4.7 1245
Landesbank Baden-Württemberg Germany 13914 142525 9.8 9.8 8.4 8.1
Bayerische Landesbank Germany 14788 135787 10.9 11.9 9.1 8.8
DZ Bank AG (Deutsche Zentralgenossenschaftbank) Germany 9408 95024 9.9 10.4 9.2 8.7
Norddeutsche Landesbank GZ Germany 6931 92576 7.5 8.0 6.4 6.2
Deutsche Postbank AG Germany 4906 68701 7.1 7.9 6.7 6.6
WestLB AG Germany 5148 35651 14.4 12.4 8.9 7.1
HSH Nordbank AG Germany 7491 71391 10.5 14.9 9.9 9.7
Landesbank Hessen-Thüringen GZ Germany 5416 61272 8.8 8.9 7.9 7.3
Landesbank Berlin AG Germany 5642 42363 13.3 12.8 11.3 11.2
DekaBank Deutsche Girozentrale Germany 2821 28815 9.8 11.1 9.5 8.4
WGZ Bank AG Westdeutsche Genossenschafts-Zentralbank Germany 1833 18981 9.7 10.8 9.5 9.1
National Bank of Greece Greece 7590 67407 11.3 11.7 9.6 7.40
EFG Eurobank Ergasias, S.A. Greece 5349 47827 11.2 11.7 10.2 8.17
Alpha Bank Greece 5920 51084 11.6 12.3 10.9 8.22
Piraeus Bank Group Greece 3401 37394 9.1 10.9 8.3 6.0
Agricultural Bank of Greece S.A. (ATEbank) Greece 1263 15100 8.4 10.7 8.9 4.36 242.6
TT Hellenic Postbank S.A. Greece 1286 7525 17.1 17.0 15.0 10.1
OTP Bank NYRT. Hungary 3521 25463 13.8 18.0 16.8 16.2
FHB Jelzálogbank Nyilvánosan Működő RT. Hungary 122 1428 8.6 14.1 10.8 10.6
Bank of Ireland Ireland 9575 104639 9.2 9.0 7.6 7.1
Allied Irish Banks Ireland 8542 121605 7.0 9.5 7.2 6.5
UniCredit Italy 39034 452388 8.6 10.0 8.1 7.8
Intesa Sanpaolo Italy 30205 361750 8.3 9.8 8.8 8.2
Banca Monte dei Paschi di Siena Italy 9093 120899 7.5 7.6 6.8 6.2
Banco Popolare Italy 7125 92623 7.7 7.8 7.4 7.0
Unione di Banche Italiane SCPA (UBI Banca) Italy 6817 85677 8.0 7.6 7.1 6.8
Banque et Caisse D’Épargne de l’État Luxembourg 1552 13569 11.4 14.2 11.5 11.3
Banque Raiffeisen Luxembourg 195 2286 8.5 9.8 8.4 8.2
Bank of Valletta Malta 343 3269 10.5 11.5 11.0 9.3
ING Bank The Netherlands 34015 332375 10.2 11.2 9.1 8.8
Rabobank Group The Netherlands 33226 236320 14.1 14.8 12.7 12.5
ABN/Fortis Bank Nederland (Holdings) NV The Netherlands 15481 118703 13.0 12.0 10.3 9.9
SNS Bank The Netherlands 2766 25885 10.7 12.0 10.8 10.5
PKO Bank Polski Poland 3960 29691 13.3 16.5 15.7 15.4
Caixa Geral de Depósitos Portugal 5983 71041 8.4 9.1 8.4 8.2
Banco Comercial Português Portugal 6102 65623 9.3 9.4 8.4 8.4
Espírito Santo Financial Group S.A. Portugal 5199 67899 7.7 9.2 7.4 6.9
Banco BPI Portugal 2210 26060 8.5 11.6 10.3 10.2
Nova ljubljanska banka Slovenia 917 12163 7.5 7.0 7.4 6.3
Grupo Santander Spain 56005 562616 10.0 11.0 10.2 10.0
Grupo BBVA Spain 27255 290062 9.4 10.6 9.6 9.3
“Jupiter”: Caja Madrid, Bancaja, etc. Spain 19244 223066 8.6 8.8 6.8 6.3
La Caixa Spain 16800 162979 10.3 10.6 8.5 7.7
“Base”: Caja de Ahorros Mediterráneo, etc. Spain 8087 86534 9.3 10.5 8.4 7.8
Banco Popular Español Spain 8457 92571 9.1 9.2 7.5 7.0
Banco de Sabadell Spain 5211 57958 9.0 9.6 7.7 7.2
Diada Spain 3470 52861 6.6 6.4 4.5 3.9 1032
“Breogan”: Caja de Ahorros de Galicia, Caixanova, etc. Spain 5035 58516 8.6 10.1 7.8 7.2
“Mare Nostrum”: Caja de Ahorros de Murcia, SA Nostra, etc. Spain 4129 45858 9.0 9.7 7.6 7.0
Bankinter, S.A. Spain 2291 30659 7.5 8.4 7.6 6.8
“Espiga”: Caja Duero, Caja España, etc. Spain 2475 28881 8.6 8.2 6.1 5.6 127
Banca Cívica”: Caja Navarra, etc. Spain 2900 30055 9.6 7.6 5.2 4.7 406
Ibercaja Spain 2369 25291 9.4 9.1 7.3 6.7
Unicaja Spain 2584 21909 11.8 11.8 9.6 9.0
Banco Pastor Spain 1974 18713 10.5 8.7 6.8 6.0
Caja Sol Spain 2197 21237 10.3 8.7 6.6 6.0
Bilbao Bizkaia Kutxa Spain 2812 19202 14.6 17.4 14.7 14.1
Unnim”: Caixa Sabadell, etc. Spain 1426 19703 7.2 6.6 5.1 4.5 270
Kutxa Spain 2099 16100 13.0 12.6 11.1 10.6
“Caja3”: Caja Círculo, etc. Spain 1414 14994 9.4 8.8 6.6 6.1
Cajasur Spain 222 12094 1.8 6.6 4.9 4.3 208
Banca March Spain 1866 9488 19.7 20.8 19.5 19.0
Banco Guipuzcoano Spain 709 7813 9.1 8.1 6.6 6.1
Caja Vital Kutxa Spain 755 6652 11.3 9.5 7.5 7.0
Caja de Ahorros y Monte de Piedad de Ontinyent Spain 61 688 8.9 8.4 6.6 6.6
Colonya, Caixa de Pollença Spain 18 183 9.9 9.1 6.6 6.2
Nordea Sweden 19577 191858 10.2 11.3 10.2 10.1
SEB Sweden 10025 80585 12.4 11.8 10.7 10.3
Svenska Handelsbanken Sweden 8604 94617 9.1 10.2 9.1 8.9
Swedbank Sweden 7968 76518 10.4 10.7 10.5 9.9
Royal Bank of Scotland United Kingdom 62898 438200 14.4 14.1 11.7 11.2
HSBC Holdings Plc United Kingdom 122157 1133200 10.8 11.7 10.4 10.2
Barclays United Kingdom 49637 382649 13.0 15.8 13.9 13.7
Lloyds Banking Group United Kingdom 47530 493307 9.6 10.8 9.4 9.2
  • MEUR = million euros
  • Assets = total risk-weighted assets
  • Benchmark = tier 1 ratio with benchmark scenario at 31 December 2011
  • Adverse = tier 1 ratio with adverse scenario at 31 December 2011
  • Shock = tier 1 ratio with additional sovereign shock on the adverse scenario at 31 December 2011
  • Additional capital needed = additional capital needed to reach 6% tier 1 ratio under adverse scenario at 31 December 2011

See also

References

  1. ^ Results by bank of the 2010 European Union banking stress test exercise
  2. ^ "Seven EU banks fail stress tests". BBC News. 23 July 2010. The BBC, in this reference, claims that 91 banks were tested, the data released contained only 90 listed bank entries.

External links

2008 Latvian financial crisis

The 2008 Latvian financial crisis, which stemmed from the global financial crisis of 2008–2009, was a major economic and political crisis in Latvia. The crisis was generated when an easy credit market burst, resulting in an unemployment crisis, along with the bankruptcy of many companies. Since 2010, economic activity has recovered and Latvia's economic growth rate was the fastest among the EU member states in the first three quarters of 2012.

2008–09 Belgian financial crisis

The 2008–2009 Belgian financial crisis is a major financial crisis that hit Belgium from mid-2008 onwards. Two of the country's largest banks – Fortis and Dexia – started to face severe problems, exacerbated by the financial problems hitting other banks around the world. The value of their stocks plunged. The government managed the situation by bailouts, selling off or nationalizing banks, providing bank guarantees and extending the deposit insurance. Eventually Fortis was split into two parts. The Dutch part was nationalized, while the Belgian part was sold to the French bank BNP Paribas. Dexia group was dismantled, Dexia Bank Belgium was nationalized.

2008–09 Ukrainian financial crisis

Ukraine was hit heavily by the late-2000s recession, the World Bank expects Ukraine's economy to shrink 15% in 2009 with inflation being 16.4%.The deficit of Ukraine's foreign trade in goods and services January through September 2009 was estimated at $1.08 billion, which was 9.5 times down on the same period in 2008, export of goods over the period decreased by 48.7%, to $27.478 billion, while imports fell by 53.5%, to $31.570 billion; export of services dropped by 23.2%, to $6.841 billion, while imports were down by 19.9%, to $3.829 billion (the deficit of Ukraine's foreign trade over the first nine months of 2008 was estimated at $10.284 billion, which was 2.7 times up on the same period of 2007).According to a forecast by the State Employment Center unemployment in Ukraine will triple to 9% in 2009 (there was 3% unemployment at the end of 2008), which would mean about 3 million people will apply for employment services. In September 2009 the official level of unemployment was 1.9%. 95% of the population of Ukraine have felt influence of the financial crisis; in July 2009 21% of them stated that "The crisis has a catastrophic impact on me and my family", this figure dropped to 17% in October 2009. Actual year-on-year wages in Ukraine fell in October 2009 by 10.9%, while in October 2008 it grew by 4.8% year-over-year according to the State Statistics Committee of Ukraine. The real incomes for Ukrainians in 2009 fell down 8.5% while the nominal income went up 6.2%. The Ukrainian economy shrank 15 percent in 2009. The second Tymoshenko Government had predicted GDP growth of 0.4% in 2009 and a slowdown in inflation to 9.5% (also in 2009), although the overwhelming majority of economists considered this forecast to be excessively optimistic.The Ukrainian economy recovered in the first quarter of 2010.

2008–2014 Spanish financial crisis

The 2008–2014 Spanish financial crisis, also known as the Great Recession in Spain or the Great Spanish Depression, began in 2008 during the world financial crisis of 2007–08. In 2012, it made Spain a late participant in the European sovereign debt crisis when the country was unable to bail out its financial sector and had to apply for a €100 billion rescue package provided by the European Stability Mechanism (ESM).

The main cause of Spain's crisis was the housing bubble and the accompanying unsustainably high GDP growth rate. The ballooning tax revenues from the booming property investment and construction sectors kept the Spanish government's revenue in surplus, despite strong increases in expenditure, until 2007. The Spanish government supported the critical development by relaxing supervision of the financial sector and thereby allowing the banks to violate International Accounting Standards Board standards.. The banks in Spain were able to hide losses and earnings volatility, mislead regulators, analysts, and investors, and thereby finance the Spanish real estate bubble. The results of the crisis were devastating for Spain, including a strong economic downturn, a severe increase in unemployment, and bankruptcies of major companies.Even though some fundamental problems in the Spanish economy were already evident far ahead of the crisis, Spain continued the path of unsustainable property led growth when the ruling party changed in 2004. In these early times Spain had already a huge trade deficit, a loss of competitiveness against its main trading partners, an above-average inflation rate, house price increases, and a growing family indebtedness. During the third quarter of 2008 the national GDP contracted for the first time in 15 years, and, in February 2009, Spain (and other European economies) officially entered recession. The economy contracted 3.7% in 2009 and again in 2010 by 0.1%. It grew by 0.7% in 2011. By the 1st quarter of 2012, Spain was officially in recession once again. The Spanish government forecast a 1.7% drop for 2012.The provision of up to €100 billion of rescue loans from eurozone funds was agreed by eurozone finance ministers on 9 June 2012. As of October 2012, the so-called Troika (European Commission, ECB and IMF) is in negotiations with Spain to establish an economic recovery program required for providing additional financial loans from ESM. In addition to applying for a €100 billion bank recapitalization package in June 2012, Spain negotiated financial support from a "Precautionary Conditioned Credit Line" (PCCL) package. If Spain applies and receives a PCCL package, irrespective to what extent it subsequently decides to draw on this established credit line, this would at the same time immediately qualify the country to receive "free" additional financial support from ECB, in the form of some unlimited yield-lowering bond purchases.The turning point for the Spanish sovereign debt crisis occurred on 26 July 2012, when ECB President Mario Draghi said that the ECB was "ready to do whatever it takes to preserve the euro". Announced on 6 September 2012, the ECB's Outright Monetary Transactions (OMT) program of unlimited purchases of short-term sovereign debt put the ECB's balance sheet behind the pledge. Speculative runs against Spanish sovereign debt were discouraged and 10-year bond yields stayed below the 6% level, approaching the 5% level by the end of 2012.

2010 French pension reform strikes

The 2010 pension reform strikes in France were a series of general strikes and demonstrations which occurred in France throughout September and October 2010.

They involved union members from both the private and public sectors protesting in cities, including Bordeaux, Lille, Lyon, Marseille, Paris, Toulouse, Montpellier and Strasbourg, against a proposal by the French government to raise the normal retirement age for public pensions from 65 to 67 and early reduced pensions from age 60 to 62, which the Assemblée nationale has approved, while temporary pre-crisis taxes cuts are maintained for the benefit of the richest individuals and companies, and top government officials are subject to an ongoing corruption inquiry. Those who object to the changes say the poorest will be most affected by them.The strikes have led to a reduction in public transport services, motorway blockages by lorry drivers and disruption to oil deliveries to refineries leading to a national fuel shortage. French students also joined the workers in the protests with barricades being built at around 400 high schools across the country in order to try to prevent other pupils attending classes.The strikes have been compared to the popularly supported 1995 strikes in France, with 70% of respondents to one poll suggesting the 2010 strikes would swell into a national movement akin to 1995, and a majority expressing support for such an event. CGT secretary Bernard Thibault, one of the main trade union leaders, commented to La Chaîne Info: "There have never since 1995 been as many protesters ... from both the public and private sectors, and now from all generations. The government is betting on this movement deteriorating, even breaking down. I think we have the means to disappoint them."

2010–14 Portuguese financial crisis

The 2010–14 Portuguese financial crisis was part of the wider downturn of the Portuguese economy that started in 2001 and possibly ended in 2016–17. The period from 2010 to 2014 was probably the hardest and more challenging part of the entire economic crisis; this period includes the 2011–14 international bailout to Portugal and was marked by an intense austerity policy, intenser than in any other period of the wider 2001–17 crisis. Economic growth stalled in Portugal in 2001–02; following years of internal economic crisis, the (international) Great Recession started to hit Portugal in 2008 and eventually led to the country being unable to repay or refinance its government debt without the assistance of third parties. To prevent an insolvency situation in the debt crisis, Portugal applied in April 2011 for bail-out programs and drew a cumulated €78.0 billion from the International Monetary Fund (IMF), the European Financial Stabilisation Mechanism (EFSM), and the European Financial Stability Facility (EFSF). Portugal exited the bailout in May 2014, the same year that positive economic growth re-appeared following three years of recession. The government achieved a 2.1% budget deficit in 2016 (the lowest since the restoration of democracy in 1974) and in 2017 the economy grew 2.7% (the highest growth rate since 2000).Greece and Ireland also went into a debt crisis in 2010. Together the debt crises in these three countries marked the start of the European sovereign debt crisis.

2012–13 Cypriot financial crisis

The 2012–2013 Cypriot financial crisis was an economic crisis in the Republic of Cyprus that involved the exposure of Cypriot banks to overleveraged local property companies, the Greek government-debt crisis, the downgrading of the Cypriot government's bond credit rating to junk status by international credit rating agencies, the consequential inability to refund its state expenses from the international markets and the reluctance of the government to restructure the troubled Cypriot financial sector.On 25 March 2013, a €10 billion international bailout by the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) was announced, in return for Cyprus agreeing to close the country's second-largest bank, the Cyprus Popular Bank (also known as Laiki Bank), imposing a one-time bank deposit levy on all uninsured deposits there, and possibly around 48% of uninsured deposits in the Bank of Cyprus (the island's largest commercial bank). A minority proportion of it held by citizens of other countries (many of whom from Russia), who preferred Cypriot banks because of their higher interest on bank account deposits, relatively low corporate tax, and easier access to the rest of the European banking sector. This resulted in numerous insinuations by US and European media, which presented Cyprus as a 'tax haven' and suggested that the prospective bailout loans were meant for saving the accounts of Russian depositors. No insured deposit of €100,000 or less would be affected.Nearly one third of Rossiya Bank's cash ($1 billion) was frozen in Cypriot accounts during this crisis.

Anglo Irish Bank

Anglo Irish Bank was an Irish bank headquartered in Dublin from 1964 to 2011. It began to wind down after nationalisation in 2009.

In July 2011 Anglo Irish merged with the Irish Nationwide Building Society, forming a new company named the Irish Bank Resolution Corporation. Michael Noonan, the Minister for Finance stated that the name change was important in order to remove "the negative international references associated with the appalling failings of both institutions and their previous managements".Anglo Irish mainly dealt in business and commercial banking, and had only a limited retail presence in the major Irish cities. It also had wealth management and treasury divisions. Anglo Irish had operations in Austria, Switzerland, the Isle of Man, the United Kingdom, and the United States.

The bank's heavy exposure to property lending, with most of its loan book being to builders and property developers, meant that it was badly affected by the downturn in the Irish property market in 2008. In December 2008, the Irish government announced plans to inject €1.5 billion of capital for a 75% stake in the bank, effectively nationalising it. The Dublin and London Stock Exchanges immediately suspended trading in Anglo Irish's shares, with the final closing share price of €0.22 representing a fall of over 98% from its peak.On 16 January 2009 the then Taoiseach Brian Cowen stated that it was "business as usual" at Anglo Irish Bank, and people should be reassured that the bank is solvent. Between June and September 2009, the Minister for Finance provided €4 billion in capital. In a statement on 30 March 2010, a day before Anglo Irish Bank reported its financial results, the Minister Of Finance Brian Lenihan announced an injection of €8.3 billion into the bank, noting that a further €10 billion may be required at a later stage to cover future losses and ensure an adequate capital base.

Since the nationalization of Anglo Irish Bank a number of controversies have arisen over certain business practices and loans, including loans to directors and loans to people associated with Brendan Murtagh, EMPG, and the QUINN group.

On 31 March 2010 Anglo Irish Bank reported results for the 15 months to December 2009. Losses for the period were €12.7 billion, with an operating profit before impairment of €2.4 billion and an impairment charges of €15.1 billion driving the overall result. It is the largest loss in Irish corporate history. Total assets declined to €85.2 billion at the end of 2009 from €101.3 billion in September 2008.

The European Commission allowed the Irish government on 10 August 2010 to temporarily grant €10 billion to Anglo Irish Bank - this included an additional €1.4 billion sought by Ireland to allow the nationalised bank meet its regulatory capital requirements in light of increased costs associated with transferring loans to the National Asset Management Agency.In 2011 the accounts for UK savers were moved to the Allied Irish Bank (GB).

Anti-austerity movement in Greece

The anti-austerity movement in Greece involves a series of demonstrations and general strikes that took place across the country. The events, which began on 5 May 2010, were provoked by plans to cut public spending and raise taxes as austerity measures in exchange for a €110 billion bail-out, aimed at solving the Greek government-debt crisis. Three people were killed on 5 May in one of the largest demonstrations in Greece since 1973.

On 25 May 2011 (2011-05-25), anti-austerity activists organised by the Direct Democracy Now! movement, known as the Indignant Citizens Movement (Greek: Κίνημα Αγανακτισμένων Πολιτών, Kínima Aganaktisménon-Politón), started demonstrating in major cities across Greece. This second wave of demonstrations proved different from the years before in that they were not partisan and began through peaceful means. Some of the events later turned violent, particularly in the capital city of Athens. Inspired by the anti-austerity protests in Spain, these demonstrations were organised entirely using social networking sites, which earned it the nickname "May of Facebook". The demonstrations and square sit-ins were officially ended when municipal police removed demonstrators from Thessaloniki's White Tower square on 7 August 2011.On 29 June 2011, violent clashes occurred between the riot police and activists as the Greek parliament voted to accept the EU's austerity requirements. Incidents of police brutality were reported by international media such as the BBC, The Guardian, CNN iReport and The New York Times, as well as by academic research and organisations Amnesty International. The Athens Prosecutor agreed to an investigation into accusations of excessive use of tear gas, as well as the alleged use of other expired and carcinogenic chemical substances. As of 2011 the investigation is under way.

Anti-austerity movement in Ireland

The anti-austerity movement in Ireland saw major demonstrations from 2008 (the year of the Irish economic downturn) to 2015.The protests began during October 2008 after the Fianna Fáil–Green Party coalition of the 30th Dáil oversaw the implementation of the bank guarantee, and were given further impetus by the late 2010 intervention of the European Union/European Central Bank/International Monetary Fund troika and the collapse of that government early the following year. Protests continued during the Fine Gael–Labour coalition of the 31st Dáil.

Anti-austerity movement in Portugal

The anti-austerity movement in Portugal, also referred to as the 12th March Movement (Portuguese: Movimento 12 de Março), also referred to as the Geração à Rasca (Portuguese: [ʒɨɾɐˈsɐ̃w a ˈʁaʃkɐ], "struggling generation"), took place in more than 10 cities of Portugal against austerity, the economic crisis and labour rights (Manifest). They were the biggest events since the 1974 Carnation Revolution and organized without political parties or trades unions support.A Facebook event and a blog, created by a group of friends: Alexandre de Sousa Carvalho, João Labrincha and Paula Gil, were the starting point.

Anti-austerity movement in Spain

The anti-austerity movement in Spain, also referred to as the 15-M Movement (Spanish: Movimiento 15-M), the Indignados Movement, and Take the Square, had origins in social networks such as Real Democracy NOW (Spanish: Democracia Real YA) or Youth Without a Future (Spanish: Juventud Sin Futuro). and began with demonstrations on 15 May 2011 close to the local and regional elections, held on 22 May.

Spanish media related the movement to the economic crisis, Stéphane Hessel's Time for Outrage!, the NEET-troubled generation and current demonstrations in the Middle East and North Africa, Iran, Greece, and Portugal, as well as the 2009 Icelandic demonstrations. Demonstrators protested high unemployment rates, welfare cuts, Spanish politicians, and the two-party system in Spain, as well as the political system, capitalism, banks, and political corruption. Many called for basic rights, of home, work, culture, health and education.According to RTVE, the Spanish public broadcasting company, between 6.5 and 8 million Spaniards participated in these events.

Dexia

Dexia N.V./S.A., also referred to as the Dexia Group, was a Franco-Belgian financial institution active in public finance, providing retail and commercial banking services to individuals and SMEs, asset management, and insurance; with headquarters in Saint-Josse-ten-Noode, Brussels. The company had about 35,200 members of staff and a core shareholders' equity of €19.2 billion, as of 31 December 2010, and provided governments and local public finance operators with banking and other financial services. Asset Management and Services provided asset management, investor and insurance services, in particular to clients of the two other business lines.In 2008, the bank received taxpayer bailouts for €6 billion, and it became the first big casualty of the 2011 European sovereign debt crisis. Due to big losses, suffered among others from the debt haircut on Greek government bonds, its Common Equity Tier 1 (CET1) capital ratio became negative during the second half of 2011, and an orderly resolution process began in October 2011. As part of the resolution, Dexia Bank Belgium was bought out from the Dexia group by the Belgian state, and will continue to exist under its new name Belfius. The remaining part of the Dexia group was left in a "bad bank", and will either be sold or wound down.

Great Recession in Russia

The Great Recession in Russia was a crisis during 2008–2009 in the Russian financial markets as well as an economic recession that was compounded by political fears after the war with Georgia and by the plummeting price of Urals heavy crude oil, which lost more than 70% of its value since its record peak of US$147 on 4 July 2008 before rebounding moderately in 2009. According to the World Bank, Russia’s strong short-term macroeconomic fundamentals made it better prepared than many emerging economies to deal with the crisis, but its underlying structural weaknesses and high dependence on the price of a single commodity made its impact more pronounced than would otherwise be the case.In late 2008 during the onset of the crisis, Russian markets plummeted and more than $1 trillion had been wiped off the value of Russia's shares, although Russian stocks rebounded in 2009 becoming the world’s best performers, with the MICEX Index having more than doubled in value and regaining half its 2008 losses.As the crisis progressed, Reuters and the Financial Times speculated that the crisis would be used to increase the Kremlin's control over key strategic assets in a reverse of the "loans for shares" sales of the 1990s, when the state sold off major assets to the oligarchs in return for loans. In contrast to this earlier speculation, in September 2009 the Russian government announced plans to sell state energy and transport holdings in order to help plug the budget deficit and to help improve the nation's aging infrastructure. The state earmarked about 5,500 enterprises for divestment and plans to sell shares in companies that are already publicly traded, including Rosneft, the country’s biggest oil producer.From July 2008 – January 2009, Russia's foreign exchange reserves (FXR) fell by $210 billion from their peak to $386 billion as the central bank adopted a policy of gradual devaluation to combat the sharp devaluation of the ruble. The ruble weakened 35% against the dollar from the onset of the crisis in August to January 2009. As the ruble stabilized in January the reserves began to steadily grow again throughout 2009, reaching a year-long high of $452 billion by year's-end.Russia's economy emerged from recession in the third quarter of 2009 after two quarters of record negative growth. GDP contracted by 7.9% for the whole of 2009, slightly less than the economic ministry's prediction of 8.5%. Experts expect Russia's economy will grow modestly in 2010, with estimates ranging from 3.1% by the Russian economic ministry to 2.5%, 3.6% and 4.9% by the World Bank, International Monetary Fund (IMF), and Organisation for Economic Co-operation and Development (OECD) respectively.

Greek government-debt crisis

The Greek government-debt crisis is the sovereign debt crisis faced by Greece in the aftermath of the financial crisis of 2007–08. Widely known in the country as The Crisis (Greek: Η Κρίση), it reached the populace as a series of sudden reforms and austerity measures that led to impoverishment and loss of income and property, as well as a small-scale humanitarian crisis. In all, the Greek economy suffered the longest recession of any advanced capitalist economy to date, overtaking the US Great Depression. As a result, the Greek political system has been upended, social exclusion increased, and hundreds of thousands of well-educated Greeks have left the country.The Greek crisis started in late 2009, triggered by the turmoil of the world-wide Great Recession, structural weaknesses in the Greek economy, lack of monetary policy flexibility as a member of the Eurozone (according to certain arguments),and revelations that previous data on government debt levels and deficits had been underreported by the Greek government (the official forecast for the 2009 budget deficit was less than half the final value as calculated in 2010, while after revisions according to Eurostat methodology, the 2009 government debt was finally raised from €269.3 bn to €299.7 bn, i.e., about 11% higher than previously reported).

This led to a crisis of confidence, indicated by a widening of bond yield spreads and rising cost of risk insurance on credit default swaps compared to the other Eurozone countries, particularly Germany. The government enacted 12 rounds of tax increases, spending cuts, and reforms from 2010 to 2016, which at times triggered local riots and nationwide protests. Despite these efforts, the country required bailout loans in 2010, 2012, and 2015 from the International Monetary Fund, Eurogroup, and European Central Bank, and negotiated a 50% "haircut" on debt owed to private banks in 2011, which amounted to a €100bn debt relief (a value effectively reduced due to bank recapitalisation and other resulting needs). After a popular referendum which rejected further austerity measures required for the third bailout, and after closure of banks across the country (which lasted for several weeks), on June 30, 2015, Greece became the first developed country to fail to make an IMF loan repayment on time (payment was made with a 20-day delay). At that time, debt levels had reached €323bn or some €30,000 per capita (a per capita value still below the OECD average, but high as a percentage of the respective GDP).

Between 2009 and 2017 the Greek government debt rose from €300 bn to €318 bn, i.e. by only about 6% (thanks, in part, to the aforementioned debt restructuring); however, during the same period, the critical debt-to-GDP ratio shot up from 127% to 179% due to the severe GDP drop during the handling of the crisis.

List of acronyms associated with the eurozone crisis

This is a list of acronyms and initialisms associated with the eurozone crisis.

List of bank stress tests

This list covers formal bank stress testing programs, as implemented by major regulators worldwide. It does not cover bank proprietary, internal testing programs.Regulators devise hypothetical future adverse economic scenarios to test banks known as stress tests. These established scenarios are then given to the banks in their jurisdiction and tests are run, under the close supervision of the regulator. They evaluate if the bank could endure the given adverse economic scenario, survive in business, and most importantly, continue to actively lend to households and business. If it is calculated that the bank can absorb the loss, and still meet the minimum bank capital requirements to remain in active business, they are deemed to have passed.

Post-2008 Irish banking crisis

The post-2008 Irish banking crisis was the situation whereby, due to the Great Recession, a number of Irish financial institutions faced almost imminent collapse due to insolvency. In response, the Irish government instigated a €64 billion bank bailout. This then led to a number of unexpected revelations about the business affairs of some banks and business people. Ultimately, added onto the deepening recession in the country, the banks bailout was the primary reason for the Irish government requiring IMF assistance and a total restructuring of the Irish Government occurred as result of this.

Post-2008 Irish economic downturn

The post-2008 Irish economic downturn in the Republic of Ireland, coincided with a series of banking scandals, followed the 1990s and 2000s Celtic Tiger period of rapid real economic growth fuelled by foreign direct investment, a subsequent property bubble which rendered the real economy uncompetitive, and an expansion in bank lending in the early 2000s. An initial slowdown in economic growth amid the international financial crisis of 2007–08 greatly intensified in late 2008 and the country fell into recession for the first time since the 1980s. Emigration, as did unemployment (particularly in the construction sector), escalated to levels not seen since that decade.

The Irish Stock Exchange (ISEQ) general index, which reached a peak of 10,000 points briefly in April 2007, fell to 1,987 points—a 14-year low—on 24 February 2009 (the last time it was under 2,000 being mid-1995). In September 2008, the Irish government—a Fianna Fáil-Green coalition—officially acknowledged the country's descent into recession; a massive jump in unemployment occurred in the following months. Ireland was the first state in the eurozone to enter recession, as declared by the Central Statistics Office (CSO). By January 2009, the number of people living on unemployment benefits had risen to 326,000—the highest monthly level since records began in 1967—and the unemployment rate rose from 6.5% in July 2008 to 14.8% in July 2012. The slumping economy drew 100,000 demonstrators onto the streets of Dublin on 21 February 2009, amid further talk of protests and industrial action.With the banks "guaranteed", and the National Asset Management Agency (NAMA) established on the evening of 21 November 2010, then Taoiseach Brian Cowen confirmed on live television that the EU/ECB/IMF troika would be involving itself in Ireland's financial affairs. Support for the Fianna Fáil party, dominant for much of the previous century, then crumbled; in an unprecedented event in the nation's history, it fell to third place in an opinion poll conducted by The Irish Times—placing behind Fine Gael and the Labour Party, the latter rising above Fianna Fáil for the first time. On 22 November, the Greens called for an election the following year. The 2011 general election replaced the ruling coalition with another one, between Fine Gael and Labour. This coalition continued with the same austerity policies of the previous coalition, as the country's larger parties all favour a similar agenda, but subsequently lost power in the 2016 General Election.

Official statistics showed a drop in most crimes coinciding with the economic downturn. Burglaries, however, rose by approximately 10% and recorded prostitution offences more than doubled from 2009 to 2010. In late 2014 the unemployment rate was 11.0% on the seasonally adjusted measure, still over double the lows of the mid-2000s but down from a peak of 15.1% in early 2012. By May 2016, this figure had fallen to 7.8%.

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