EBA EU-wide stress test results

The EU-wide stress test assesses the resilience of 70 banks from 16 EU and EEA countries representing about 75% of EU banks’ total assets. This is done by analyzing the impact on the banks of a hypothetical adverse macroeconomic scenario over the three-year horizon 2023-25.
The results of the stress test show that European banks remain resilient under the adverse scenario, when they absorb more than 496bn EUR of losses. The results of the stress test indicate that on average banks finish the exercise in the adverse scenario with a Common Equity Tier 1 (CET1) ratio above 10% and shows that banks can continue to support the economy also in times of severe stress.

The current uncertainty in the macroeconomic environment shows the importance of remaining vigilant and the need of supervisors and banks to be prepared for any potential worsening of the current economic conditions.

In this alert, you will read more about the scenarios, the new features compared to 2021 EU-wide stress test and the main findings.