Featured Product

    ECB Publishes Results of the 2018 Stress Test for Banks

    February 01, 2019

    ECB published aggregate results for the 2018 stress test for all participating banks under its supervision. The results show that the 87 banks directly supervised by ECB have become more resilient to financial shocks over the past two years.

    Despite a more severe adverse scenario than in the 2016 stress test, the average common equity tier 1 (CET1) capital ratio of all 87 banks after a three-year stress period was 10.1%, up from 8.8% two years ago. The results show that the 87 banks directly supervised by ECB have become more resilient to financial shocks over the past two years. Looking at the 54 medium-size banks tested solely by ECB, the results show that they have become better capitalized, increasing their ability to absorb financial shocks. In addition to the EBA sample (33 banks), which covers about 70% of euro area banking assets, they represent a further 9% of banking assets in the euro area. Despite increased resilience overall among medium-size banks, challenges remain for euro area banks and ECB will monitor the progress of work on business models and legacy issues.

    The 87 banks covered in the report include 33 euro area banks that were part of the EU-wide stress test coordinated by EBA. ECB conducted additional stress tests on 54 significant institutions, which it directly supervises and which were not part of the EBA stress test. Both sets of results form this aggregate report. The reference date for the 2018 stress test was December 31, 2017. ECB applied largely the same methodology as EBA when stress testing the 54 medium-size banks. Some significant banks directly supervised by ECB were not part of either stress test, mostly because they are subsidiaries of banks already covered by the EBA exercise or in the process of merging or restructuring. The results of these stress tests will contribute to the Supervisory Review and Evaluation Process (SREP) under the Single Supervisory Mechanism (SSM) 

     

    Related Links

    Keywords: Europe, EU, Banking, Stress Testing, 2018 EU Stress Testing, SSM, Significant Institutions, EBA, ECB

    Featured Experts
    Related Articles
    News

    FASB Proposes Taxonomy Changes Related to Topics 848 and 470

    FASB proposed taxonomy improvements for the proposed Accounting Standards Update on topic 848 on facilitation of effects of reference rate reform on financial reporting.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Statement on Recalculating Transitional Measures Under Solvency II

    BoE notified that it will be willing to accept applications from firms to recalculate transitional measure on technical provisions (TMTP) as at September 30, 2019.

    September 16, 2019 WebPage Regulatory News
    News

    BoE Paper on Market-Implied Systemic Risk and Shadow Capital Adequacy

    BoE published a working paper that presents a forward-looking approach to measure systemic solvency risk.

    September 13, 2019 WebPage Regulatory News
    News

    HKMA Consults on Policy Module on Pillar 2 Supervisory Review Process

    HKMA is consulting on the revised Supervisory Policy Manual module CA-G-5 that sets out the HKMA approach to conducting the supervisory review process under Pillar 2.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Publishes Waiver by Consent of Continuity of Access Rules

    PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP).

    September 13, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for September 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    ISDA Guide on Collateral Management Under Smart Derivatives Contracts

    ISDA published the third in a series of legal guidelines for smart derivatives contracts.

    September 12, 2019 WebPage Regulatory News
    News

    ESA Report Highlights Risks of No-Deal Brexit in EU Financial System

    ESAs published a Joint Committee report on risks and vulnerabilities in the EU financial system.

    September 12, 2019 WebPage Regulatory News
    News

    ECB Modifies New Targeted Longer-Term Refinancing Operations

    The Governing Council of ECB decided to modify some of the key parameters of the third series of targeted longer-term refinancing operations (TLTRO III) to preserve favorable bank lending conditions (Decision (EU) 2019/1558).

    September 12, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3819