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

    US Agencies Requests Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3997