European Banking Authority 2011 EU-Wide Stress Test Aggregate Report

European Banking Authority (EBA)

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Date Published 2011
Primary Author European Banking Authority (EBA)
Other Authors
Theme Regulation and Supervision of Housing Finance Systems


The 2011 EBA’s EU wide stress test had the objective of assessing the resilience of a large sample of banks in the EU1 against an adverse but plausible scenario. The scenario assesses banks against a deterioration from the baseline forecast in the main macroeconomic variables such as GDP, unemployment and house prices – for instance, GDP would fall 4 percentage points from the baseline. The stress test exercise is a general macro-economic scenario across all countries in the EU. The results shed light on the sensitivities of the European banking sector to a general economic downturn and movements in external variables, such as interest rates, economic growth and unemployment. The stress test does not directly capture all possible outcomes of the current sovereign crisis, which is rightly being handled by relevant fiscal authorities, but the transparency of this exercise is designed to provide investors, analysts and other market participants with an informed view on the resilience of the EU banking sector.

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