EBA confirms next EU-wide stress test in 2020!
The EU-wide stress testing package has just been issued by EBA, and it includes the methodology, templates and template guidance. The stress test aims at providing all market participants with an overview of the level of resilience of financial institutions against adverse market developments and to also challenge the capital level of EU banks.
The stress-testing exercise will be carried out on a sample of banks which will cover approximately 70% of the banking sector in the euro area, each non-euro area EU Member State and Norway. The banks should meet the EUR 30 bn assets materiality threshold, which is consistent with the criteria used for inclusion in the sample of banks reporting supervisory reporting data to the EBA, as well as with the SSM definition of a significant institution.
This article provides further insight on which banks in Romania are to be affected by the test, the methodology involved and the calendar of the stress test.