EBA eyes top-down stress test for credit risk

European version of CCAR is off the table, but more projections are likely to be modelled by the regulator

European Banking Authority is based in Europlaza Tower, Paris
Europlaza Tower in Paris, home to the EBA
Photo: 11h45_Paris La Defense

The guarded relief that Europe’s bankers felt when the industry regulator discarded plans to use a controversial dual structure for its 2023 stress test may prove to be premature.

The European Banking Authority has set its sights on a new model for credit risk – one that would use the regulator’s own formulas in the stress test, rather than allowing banks to use their internal projections.

This top-down model is part of the regulator’s vision for its “hybrid” approach to testing European Union

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 copy this content. Please contact info@risk.net 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


Want to know what’s included in our free membership? Click 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