OREANDA-NEWS. July 24, 2009. Eesti Pank published a topical Flash report on the loan losses and capital adequacy of banks in the economic decline stage. According to the stress test conducted in spring this year, the Estonian banking sector will meet the capital adequacy requirement in 2009, reported the press-centre of Eesti Pank.

As anticipated, the share of loans overdue by more than 60 days in the loan portfolio of banks reached its recent years' highest level by mid-2009. Banks have suffered losses due to increased loan write-downs this year.

The banks operating in Estonia have used their earlier years' profits to form strong capital buffers, which are sufficient also during the current economic slump. The Estonian banking sector will meet the capital adequacy requirement in 2009.

The Flash report is available on the web page of Eesti Pank:
http://www.eestipank.info/pub/en/dokumendid/publikatsioonid/seeriad/paevakaja/_20090722.pdf