ECB Review Marks End of Europe Banking Crisis, Dijsselbloem Says.

http://www.bloomberg.com/news/2014-10-26/ecb-review-marks-end-of-europe-banking-crisis-dijsselbloem-says.html

The European Central Bank’s stress test marks the passing of the region’s banking crisis, Eurogroup President Jeroen Dijsselbloem said.

“I definitely think the banking crisis is behind us,” Dijsselbloem, who is also Dutch finance minister, said in an interview with Bloomberg Television in The Hague yesterday. “I am never free of worry, so I do feel that banks have to keep on working managing their risks, strengthening their capital ratios where necessary also in the future.”

Twenty-five of 130 lenders tested failed the balance-sheet review led by the ECB, which found the biggest capital hole lurking in Italy. While the Frankfurt-based institution identified a total shortfall of 25 billion euros ($32 billion), most of that is covered by measures undertaken by the banks this year.

Dijsselbloem said he is “quite confident” the banks that failed will be successful in bringing in more capital. “The numbers are manageable. It is very important to get that done so that everyone can be rest assured that European banks are once again solid.”

Nine of the banks that failed are Italian, with Banca Monte dei Paschi di Siena SpA leading the pack with a capital gap of 2.1 billion euros. In Portugal, Banco Comercial Portugues SA was found to have a shortfall of 1.15 billion euros. The bank said in a statement yesterday after the ECB published its results that measures undertaken this year are sufficient to make up the difference.

Eurogroup Chairman and Dutch Finance Minister Jeroen Dijsselbloem.