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

    FSB Publishes List of Global Systemically Important Banks for 2019

    FSB published the 2019 list of global systemically important banks (G-SIBs), using the end-2018 data and an assessment methodology designed by BCBS.

    November 22, 2019 WebPage Regulatory News
    News

    EBA Publishes Roadmap on Risk Reduction Measures Package

    EBA published a set of roadmaps outlining the approach and timelines for delivering the mandates stemming from the Risk Reduction Measures Package adopted by the European Council and European Parliament on May 20, 2019.

    November 21, 2019 WebPage Regulatory News
    News

    EBA Consults on Initial Reporting Requirements for Market Risk

    EBA launched a consultation on the implementing technical standards on supervisory reporting requirements for market risk.

    November 21, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 20, 2019 WebPage Regulatory News
    News

    CBIRC to Strengthen Supervisory and Policy Support for SME Services

    CBIRC released a notification on strengthening supervision and guidance to enhance the quality and efficiency of financial services for "small and micro-enterprises" (SMEs).

    November 20, 2019 WebPage Regulatory News
    News

    FED Adopts Proposal to Implement Reporting Form for SCCL

    FED adopted a proposal to implement the Single-Counterparty Credit Limits (SCCL) reporting form FR 2590.

    November 20, 2019 WebPage Regulatory News
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Update Rule on Derivative Contracts Exposure Calculation

    US Agencies (FDIC, FED, and OCC) announced a final rule updating the way certain banking organizations are required to measure counterparty credit risk for derivative contracts under their regulatory capital rules.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Amend Treatment of HVCRE Exposures

    US Agencies (FDIC, FED, and OCC) finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Changes to Rule on Supplementary Leverage Ratio

    US Agencies (FDIC, FED, and OCC) finalized changes to the capital requirement for banking organizations predominantly engaged in custodial activities, as required by the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

    November 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4177