EBA - Stress tests on the European banking system

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This section is dedicated to the EBA EU-wide stress tests and provides information about the methodologies and the scenarios used, as well as any additional supporting information released by the EBA during the conduct of the exercise.

One of the responsibilities of the European Banking Authority (EBA) is to ensure the orderly functioning and integrity of financial markets and the stability of the financial system in the EU. To this end, the EBA is mandated to monitor and assess market developments as well as to identify trends, potential risks and vulnerabilities stemming from the micro-prudential level.

One of the primary supervisory tools to conduct such an analysis is the EU-wide stress test exercise. The EBA Regulation gives the Authority powers to initiate and coordinate the EU-wide stress tests, in cooperation with the European Systemic Risk Board (ESRB). The aim of such tests is to assess the resilience of financial institutions to adverse market developments, as well as to contribute to the overall assessment of systemic risk in the EU financial system.

The EBA's EU-wide stress tests are conducted in a bottom-up fashion, using consistent methodologies, scenarios and key assumptions developed in cooperation with the ESRB, the European Central Bank (ECB) and the European Commission (EC).

Stress tests on the European banking system - Stress test results of 2016

Stress tests on the European banking system - Stress test results of 2014

Stress tests on the European banking system - Stress test results of 2011

Details

The five Italian banking groups that participated in the EU-wide bank stress test have passed the threshold of 5 per cent. The banks involved in this exercise represent more than 62 per cent of the total assets of the Italian banking system. The results of the 2011 stress tests confirm the adequacy of Italian banks' capital to absorb the shocks coming from further deterioration of macroeonomic and market conditions.

The stress tests are carried out by the European Banking Authority (EBA) and the national supervisory authorities in EU member states, in close cooperation with the European Systemic Risk Board (ESRB), the European Central Bank, and the European Commission.

The description of the scenarios and methods used is published, together with the results for the European banks that participated, on the EBA website.

Stress tests on the European banking system - Stress test results of 2010

Details

The Bank of Italy publishes the responses of the main Italian banking groups to the stress tests performed at European level.

The stress tests are carried out by the European Banking Authority (EBA) and national supervisory authorities, in close cooperation with the European Central Bank. The description of the scenarios used and methods applied are published, together with the results for the European banks that participated, on the EBA website.

The five largest Italian banking groups participated in the first stress test, which was held in 2010. For each of the five groups the Bank of Italy publishes the results of the stress test and some information on their exposure to European sovereign borrowers. Other information is published on the banking groups own websites.