Press Release: EBA publishes common methodology and scenario for 2014 EU-banks stress test

The European Banking Authority (EBA) released its methodology and macroeconomic scenarios for the 2014 EU-wide stress test on the 29 April 2014.

While the extensive process of banks' balance sheet repair is already underway, the test, designed to assess banks' resilience to hypothetical external shocks, will identify remaining vulnerabilities in the EU banking sector and will provide a high level of transparency into EU banks' exposures. The objective of the EU-wide stress tests is to help supervisors assess the resilience of financial institutions in the European Union to adverse market developments.

The EU-wide stress test will be conducted on a sample of 124 EU banks which cover at least 50% of each national banking sector, and will be run at the highest level of consolidation.

• Primary Source

ESO: Background information: Bank Oversight: Europe Stressed by Approaching Stress Tests http://www.europeansources.info/record/bank-oversight-europe-stressed-by-approaching-stress-tests/

BBC News, 29.04.14: Regulators reveal details of European bank stress tests http://www.bbc.co.uk/news/business-27201985

EBA: Risk analysis and data: EU-wide stress testing: 2014 https://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2014?

ECB: Press Release, 29.04.14: Note on the comprehensive assessment, April 2014 http://www.ecb.europa.eu/pub/pdf/other/notecomprehensiveassessment201404en.pdf?

ECB: Press Release, 29.04.14: ECB to give banks six to nine months to cover capital shortfalls following comprehensive assessment. http://www.ecb.europa.eu/press/pr/date/2014/html/pr140429_1.en.html

ESO: Background information: Statement by Michel Barnier on the EBA publication of key components of the common methodology for the 2014 EU-wide stress test http://www.europeansources.info/record/statement-statement-by-michel-barnier-on-the-eba-publication-of-key-components-of-the-common-methodology-for-the-2014-eu-wide-stress-test/

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