Press Release: EBA announces details of 2016 EU-wide stress test

The European Banking Authority (EBA) published on the 5 November 2015 its 2016 EU-wide stress test draft methodology for discussion. The stress test will be formally launched in the first quarter of 2016 and will cover over 70% of the EU banking sector and will assess EU banks' ability to meet relevant supervisory capital ratios during an adverse economic shock.

The results will inform the 2016 Supervisory Review and Evaluation Process (SREP), acting as a challenge to banks' forward looking capital plans. The exercise will also provide market participants with a consistent basis to compare and assess the resilience of EU banks. The list of institutions participating in the exercise was also released on the 5 November 2015.

ESO: Background information: EBA updates on upcoming transparency exercise and on key features of 2016 EU-wide stress test http://www.europeansources.info/record/press-release-eba-updates-on-upcoming-transparency-exercise-and-on-key-features-of-2016-eu-wide-stress-test/

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