Clearstream Banking SA passed the ECB's stress test with strong results, achieving a core tier 1 ratio close to 20%. While classified as a central infrastructure, it will not be deemed a 'significant institution' under the new banking union framework, but will face closer ECB supervision. Direct oversight will remain with the CSSF in Luxembourg and BaFin in Germany.

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
nicolas.nonnenmacher@clearstream.com
Company Statement