Banks relieved as EBA punts on dual-track stress tests

Hybrid approach for 2023 will see top-down models used to project net fee and commission income only

eba-european-banking-authority

European banks breathed a sigh of relief last month after the European Banking Authority backed away from a long-mooted split structure for its 2023 stress tests, opting instead for a hybrid approach.

Reforms proposed by the EBA in 2020 would have divided the biennial stress test into two parts: a bottom-up leg, where banks use internal models to gauge how they would perform in pre-set stress scenarios; and a top-down leg, where supervisory models are used to assess these same shocks. The

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Sign up here

 

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: