The European Banking Authority (EBA) has published the results of its 2023 EU-wide stress test, which involved 70 banks from 16 EU and EEA countries, covering 75% of the EU banking sector assets. This stress test allows supervisors to assess the resilience of EU banks to a common set of adverse economic developments in order to identify potential risks over a three-year horizon under both a baseline and an adverse scenario. The adverse scenario is characterised by severe negative shocks to economic growth, higher unemployment combined with higher interest rates and credit spreads. In terms of GDP decline, the 2023 adverse scenario is the most severe used in the EU wide stress up to now. The individual bank results promote market discipline and are used as part of the EU supervisory decision-making process.

EBA, July 2023 - Read the Publication

See also:

• Discussion Paper on the Future Changes to the EU-Wide Stress Test (22 January 2020)
• EBA Ad-Hoc Analysis on Bank Bonds Holdings (28 July 2023)