Today, Friday, results of the European Banking Authority's stress test were published. The test is designed to demonstrate banks’ resilience during a protracted negative business environment.
The evaluation covers 51 banks in Europe, which together comprise 70 percent of the banking sector in the EU. The aim is to test how banks are affected by a prolonged, extreme scenario with steep GDP declines, falling house prices, as well as sharply negative development on equity and fixed-income markets.
The evaluation has been made in a uniform manner and with given conditions.