| Author (Corporate) | European Banking Authority |
|---|---|
| Series Title | Press Release |
| Series Details | 26.10.14 |
| Publication Date | 26/10/2014 |
| Content Type | News |
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The European Banking Authority (EBA) published on the 26 October 2014 the results of the 2014 EU-wide stress test of 123 banks. The aim of the 2014 EU-wide stress test was to assess the resilience of EU banks to adverse economic developments, so as to understand remaining vulnerabilities, complete the repair of the EU banking sector and increase confidence. The EU-wide stress test was coordinated by the EBA and carried out in cooperation with the European Central Bank (ECB), the European Systemic Risk Board (ESRB), the European Commission (EC) and the Competent Authorities (CAs) from all relevant national jurisdictions. Concurrently, the European Central Bank (ECB) published the results of a thorough year-long examination of the resilience and positions of the 130 largest banks in the euro area as of 31 December 2013 ('Comprehensive assessment'). The comprehensive assessment, which consisted of the asset quality review (AQR) and a forward-looking stress test of the banks—found a capital shortfall of €25bn at 25 banks. Twelve of the 25 banks have already covered their capital shortfall by increasing their capital by €15bn in 2014. Banks with shortfalls must prepare capital plans within two weeks of the announcement of the results. The banks will have up to nine months to cover the capital shortfall. The results of the comprehensive assessment of the 130 most significant European banks showed that the sector was very robust and capable of sustaining a severe recession, the European Banking Federation concluded. |
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| Source Link | http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2014/results |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
