HALISTER1: EU Banks Have EU376b Rescue Fund Shortfall: Morgan Stanley

EU Banks Have EU376b Rescue Fund Shortfall: Morgan Stanley

(Bloomberg) -- Size of shortfall in likely minimum required own funds and eligible liabilities “should be a relief, not a scare,” because there is ~EU561b of senior debt maturing in 3 yrs to end-2019, Morgan Stanley analysts Jackie Ineke and Greg Case say in report.
  • Most likely scenario for setting requirement is double SREP plus buffers: MS
  • Under that scenario, MS estimates 3 biggest shortfalls are:
    • BNP Paribas EU52.6b
    • Banco Santander EU53.6b
    • UniCredit EU36.9
  • BNP has ~EU34b due in period, so net shortfall is ~EU19b
  • Santander has ~EU43b coming due, UniCredit ~EU57.1b
  • NOTE: Yday, EU Banks May Need Rescue Funds Equaling Twice ECB Capital
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MS US (Morgan Stanley)
SAN SM (Banco Santander SA)
BNP FP (BNP Paribas SA)
UCG IM (UniCredit SpA)

People
Greg Case (Morgan Stanley)
Jackie Ineke (Morgan Stanley)

To de-activate this alert, click here

UUID: 7947283