EBA publishes 2014 EU-wide stress test results

Author (Corporate)
Series Title
Series Details 26.10.14
Publication Date 26/10/2014
Content Type

The European Banking Authority (EBA) published on the 26 October 2014 the results of the 2014 EU-wide stress test of 123 banks.

The aim of the 2014 EU-wide stress test was to assess the resilience of EU banks to adverse economic developments, so as to understand remaining vulnerabilities, complete the repair of the EU banking sector and increase confidence.

The EU-wide stress test was coordinated by the EBA and carried out in cooperation with the European Central Bank (ECB), the European Systemic Risk Board (ESRB), the European Commission (EC) and the Competent Authorities (CAs) from all relevant national jurisdictions.

Concurrently, the European Central Bank (ECB) published the results of a thorough year-long examination of the resilience and positions of the 130 largest banks in the euro area as of 31 December 2013 ('Comprehensive assessment').

The comprehensive assessment, which consisted of the asset quality review (AQR) and a forward-looking stress test of the banks—found a capital shortfall of €25bn at 25 banks. Twelve of the 25 banks have already covered their capital shortfall by increasing their capital by €15bn in 2014. Banks with shortfalls must prepare capital plans within two weeks of the announcement of the results. The banks will have up to nine months to cover the capital shortfall.

The results of the comprehensive assessment of the 130 most significant European banks showed that the sector was very robust and capable of sustaining a severe recession, the European Banking Federation concluded.

Source Link Link to Main Source http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2014/results
Related Links
ESO: Background information: EU-wide stress testing 2014 http://www.europeansources.info/record/eu-wide-stress-testing-2014/
BBC News, 26.10.14: Twenty-four European banks fail EBA stress test http://www.bbc.co.uk/news/business-29777589
ECB: Press Release, 26.10.14: ECB’s in-depth review shows banks need to take further action https://www.ecb.europa.eu/press/pr/date/2014/html/pr141026.en.html
European Commission: DG Communication: RAPID: STATEMENT/14/336: Safer banks serving the economy: the European Commission welcomes the publication of the results of the EU-wide stress test by the European Banking Authority and the comprehensive assessment by the European Central Bank http://europa.eu/rapid/press-release_STATEMENT-14-336_en.htm
The Guardian, 26.10.14: Twenty-four European banks fail financial stress tests http://www.theguardian.com/business/2014/oct/26/european-banks-fail-financial-stress-tests
Deutsche Welle, 26.10.14: ECB fails 25 banks in landmark review http://dw.de/p/1DcK6
European Banking Federation: Press Release, 26.10.14: Comprehensive assessment shows robust European banking sector http://www.ebf-fbe.eu/wp-content/uploads/2014/10/EBF_011299-Comprehensive-assessment-shows-robust-European-banking-sector.pdf
EurActiv, 27.10.14: ECB fails 25 banks in health check, 9 in Italy http://www.euractiv.com/sections/euro-finance/ecb-fails-25-banks-health-check-9-italy-309506
ESO: Background information: EU-wide stress test results will be published on 26 October http://www.europeansources.info/record/eu-wide-stress-test-results-will-be-published-on-26-october/
Euro|Topics: Main Focus, 27.10.14: Thirteen banks fail ECB stress test http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER152631-Thirteen-banks-fail-ECB-stress-test
Financial Times, 27.10.14: Italy under pressure as nine banks fail stress tests (via VOX Europ) http://www.voxeurop.eu/en/content/news-brief/4844750-italy-under-pressure-nine-banks-fail-stress-tests
EUObserver, 27.10.14: One in five EU banks fail stress tests http://euobserver.com/news/126256
BBC News, 27.10.14: Italy's Monte dei Paschi shares suspended twice after 'stress tests' http://www.bbc.co.uk/news/business-29785093
Euronews, 26.10.14: Banks fail EU stress tests as 13 are given six months to restore health http://www.euronews.com/2014/10/26/25-major-european-banks-fail-ecb-s-first-stress-test/
The Guardian, 26.10.14: World’s oldest lender fails European banking stress test http://www.theguardian.com/business/2014/oct/26/worlds-oldest-bank-fails-european-stress-tests
The Conversation, 28.10.14: Europe’s stress tests find 25 banks wanting, but it’s not all bad news http://theconversation.com/europes-stress-tests-find-25-banks-wanting-but-its-not-all-bad-news-33504
Euro|Topics: Who's saying what: Europe's banks under supervision http://www.eurotopics.net/en/home/debatten/links-2014-10-bankenaufsicht/

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