EBA publishes 2016 EU-wide stress test results

The European Banking Authority (EBA) published on the 29 July 2016 the results of the 2016 EU-wide stress test of 51 banks from 15 EU and EEA countries covering around 70% of banking assets in each jurisdiction and across the EU.

The objective of the stress test was to provide supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of large EU banks to adverse economic developments. Along with the results, the EBA was providing again substantial transparency of EU banks' balance sheets, with over 16,000 data points per bank, an essential step towards enhancing market discipline in the EU.

The 2016 EU-wide stress test did not contain a pass fail threshold. Instead it was designed to support ongoing supervisory efforts to maintain the process of repair of the EU banking sector.

The stress test will therefore be an important input into the supervisory review process in 2016.

Euro|Topics commented that 'The latest stress test carried out by the European Banking Authority has revealed that Europe's major banks are more stable than they were two years ago. Substantial recapitalisation has made them more resilient, the authority stated. But some commentators are still concerned about banks in Spain and Italy'.

ESO: Background information: EBA launches 2016 EU wide stress test exercise http://www.europeansources.info/record/press-release-eba-launches-2016-eu-wide-stress-test-exercise/

Politico, 30.07.16: EU banks get relatively clean bill of health http://www.politico.eu/article/regulators-say-eu-banks-are-healthy-stress-test-renzi-eu/

BBC News, 29.07.16: RBS performs poorly in stress tests http://www.bbc.co.uk/news/business-36928888

Deutsche Welle, 29.07.16: Most European banks deemed healthy http://dw.com/p/1JYlb

EurActiv, 30.07.16: No clean bill of health for EU banks in stress test http://www.euractiv.com/section/euro-finance/news/no-clean-bill-of-health-for-eu-banks-in-stress-test/

EBA: Risk analysis and data: EU-wide stress testing http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing

ECB: Press Release, 29.07.16: Stress test shows improved resilience of euro area banking system https://www.bankingsupervision.europa.eu/press/pr/date/2016/html/sr160729.en.html

ESO: Background information: Italian banking crisis looms http://www.europeansources.info/record/italian-banking-crisis-looms/

Euro|Topics: Debates, August 2016: Are Europe's banks now crisis-proof? http://www.eurotopics.net/en/163545/are-europe-s-banks-now-crisis-proof

The Economist, 30.07.16: European banks All latest updates Stress tests results reveal a broadly healthier industry http://www.economist.com/news/business-and-finance/21703263-problems-linger-italy-and-ireland-stress-tests-results-reveal-broadly

Politico, 01.08.16: The banks that, sadly, can’t die http://www.politico.eu/article/why-u-s-and-european-banks-are-still-too-big-to-fail/

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