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

    ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures

    The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).

    April 21, 2023 WebPage Regulatory News
    News

    NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks

    The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development

    April 21, 2023 WebPage Regulatory News
    News

    EBA Issues Multiple Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.

    April 21, 2023 WebPage Regulatory News
    News

    EC Adopts Regulation on Own Funds, Issues Other Updates

    The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model

    April 20, 2023 WebPage Regulatory News
    News

    CDP Platform to Report Plastic-Related Impact, Issues Other Updates

    The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide

    April 19, 2023 WebPage Regulatory News
    News

    IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments

    The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,

    April 19, 2023 WebPage Regulatory News
    News

    BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks

    The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.

    April 17, 2023 WebPage Regulatory News
    News

    FCA Sets Out Business Plan, Launches TechSprint on Greenwashing

    The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets

    April 17, 2023 WebPage Regulatory News
    News

    UK Committee Sets Out Recommendations for Next Phase of Open Banking

    The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members

    April 17, 2023 WebPage Regulatory News
    News

    ECB Publishes Multiple Regulatory Updates for Banking Institutions

    The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,

    April 17, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8868