How some banks aced the EBA stress test
Four banks actually increased their capital ratios, while US subsidiaries were hit worst
When the European Banking Authority (EBA) released the results of its latest stress test at the start of August, four banks out of the 64 involved in the process had flipped the narrative on its head. Instead of suffering a depletion of capital in the severely adverse scenario, they accreted capital over the three-year simulation projected by the test.
Their secret? Conservative credit risk
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