By Max Colchester
LONDON-- Royal Bank of Scotland Group PLC on Friday said it made
a mistake in calculating its capital base for last month's European
stress test results.
RBS's full-year 2016 capital ratio under the European Banking
Authority's "Adverse Scenario" is 5.7% versus 6.7% previously
reported--meaning the bank just hurdled the minimum 5.5% pass
rate.
The EBA organized the stress tests, which were aimed to help
restore confidence in bank balance sheets.
RBS said it erroneously considered around billions of pounds of
deferred tax assets as top quality capital. After comparing with
other U.K. banks it realized its error and restated the
calculation.
Write to Max Colchester at max.colchester@wsj.com
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