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Statement: Clearstream passes ECB stress test


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The European Central Bank yesterday published the results of its Comprehensive Assessment and stress test. As a key European market infrastructure with a banking license Clearstream was included in the assessment - and achieved very good results.

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Statement: Clearstream passes ECB stress test

  1. 1. Luxembourg, 27 October 2014 Clearstream with very good results in ECB stress test and Comprehensive Assessment The European Central Bank (ECB) published the results of its stress test and Comprehensive Assessment of banks on 26 October 2014. The implementation of the Single Supervisory Mechanism (“banking union”), due to come into force on 4 November, will make the ECB the highest regulatory authority for banks in the Eurozone. In advance of the implementation of this mechanism, over the past months, the ECB has undertaken a critical analysis of the balance sheets of 128 Eurozone banks and banking groups, and, in line with the goals of the banking union, has ultimately classified 120 as “significant institutions”. Clearstream Banking SA, Luxembourg, as a central infrastructure ensuring the integrity of the capital markets possessing a banking license was included by the ECB in the assessment exercise. Clearstream passed the stress test with very good results in all scenarios. The extensive assessment included an examination of the balance sheet and a verification of equity capital coverage levels, which led to a confirmation by the ECB of the institution’s high resilience. Under the standard guidelines of the stress test, Clearstream Banking SA managed to achieve a Core Tier 1-quota of close to 20 per cent. As a consequence, the Company does not expect any follow-up actions as a result of the stress test. In the course of its assessment, the ECB took into account the special function and relevance of Clearstream Banking S.A. as an International Central Securities Depository, and hence has decided to not yet classify Clearstream as a “significant institution” in the sense of the banking union, despite its systemic relevance. The special importance of the Clearstream Group will however be reflected through a closer involvement on the part of the ECB in the Group’s indirect supervision. The excellent results achieved by Clearstream Banking S.A. in both the stress test and in the framework of the entire Comprehensive Assessment are therefore a very good basis for this closer relationship. The direct supervision of Clearstream Banking SA will continue to be performed by the Luxembourgish Commission de Surveillance du Secteur Financier (CSSF). The German Federal Financial Supervisory Authority (BaFin) will continue to monitor the Clearstream Group, including Clearstream Banking AG, Frankfurt, on a consolidated level. Contact Nicolas Nonnenmacher, +352-243-36115 Company Statement