Coronavirus shock to hit diversified lenders hardest – ECB
Diversified and wholesale lenders projected to see CET1 ratio decline 7 percentage points under worst-case scenario
European lenders with mixed portfolios would see their risk-based capital ratios fall furthest under a prolonged pandemic-induced recession, a new stress test by the European Central Bank (ECB) shows.
Out of the 86 banks subjected to a severe Covid-19 scenario, 31 classified as ‘diversified lenders’ would see their weighted average Common Equity Tier 1 (CET1) capital ratio drop 7 percentage points
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk Quantum
RBC books C$984m soured-loan PCLs as tariff uncertainty persists
Set-asides run at elevated rate for yet another quarter
Interest rate ETDs surge to second-highest level on record
Futures-led surge signals firmer views on rate direction
China, US banks show highest global RWA density
American Express leads with risk density over 70%, ahead of Capital One and Truist
OCC’s initial margin spikes 27% in Q3
CCP hits new margin record for second consecutive quarter
Morgan Stanley marks biggest risk category swing in 2025 G-Sib test
Substitutability overtakes complexity at US bank for first time
Six FCMs set record lows for target residual interest share
Brokers’ own resources are outpaced by customer funds
One in 10 property loans at EU banks threatened by climate hazards
Helaba remains the most exposed among peers, with both residential and commercial books linked heavily to climate risks
BoE lowers capital benchmark for first time in a decade
Drop to 13% envisages 0.5pp decline in Pillar 2 add-ons after Basel III
