French banks cry foul over EBA’s 2020 stress-test plan
Assumptions about the cost of household sight deposits are “not plausible”, critics say
French banks are taking issue with proposed changes to the European Banking Authority’s (EBA) stress-test methodology, which they say applies a funding shock to retail deposits that would be unaffected by a jump in interest rates.
The dispute concerns the treatment of household sight deposits, which can be withdrawn without notice and have historically paid zero interest in France.
“In France, there
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