BCB says banks can withstand shocks without endangering system solvency

Tuesday, April 12, 2011

Brazilian banks can withstand economic shocks without putting their solvency at risk, central bank BCB said in a press release.

BCB conducted stress tests on the banking system using financial data from 2H10 and concluded that the system's average capital adequacy ratio (BIS) would be above the legal minimum, even under significant economic deterioration.

Brazilian banks are required to have a minimum BIS ratio of 11%, while the Basel committee's international recommendation is an 8% ratio.

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