The Committee of European Banking Supervisors (CEBS) has just published the results of the EU-wide stress test exercise. The overall objective of the 2010 exercise is to provide policy information for assessing the resilience of the EU banking system to possible adverse economic developments and to assess the ability of banks in the exercise to absorb possible shocks on credit and market risks, including sovereign risks.
The exercise includes a sample of 91 European banks, representing 65 percent of the European market in terms of total assets, in coordination with 20 national supervisory authorities. The stress test will be conducted over a 2 year-horizon, until the end of 2011.
In total, aggregate impairment and trading losses under the adverse scenario and additional sovereign shock would amount to €566bn. For more detailed information, a summary of the 91 individual bank results, sorted by country, is now available.
Find all the information online.