Should the ECB stress-test counterparty default risks?

The US Fed already does, but it is notable that EU banks were less exposed to Archegos

Counterparty credit risk experts say the European Central Bank (ECB) should take a leaf out of the US Federal Reserve’s book and make banks conduct comprehensive stress-testing of major derivatives counterparty defaults. This would help to ensure risk managers take steps to avoid a repeat of the losses suffered when highly leveraged family office Archegos collapsed in 2021.

The Fed’s annual comprehensive capital analysis and review (CCAR) includes a component that requires the major dealers to

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a 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