LBBW breaches leverage floor in EBA stress test
Adverse scenario would erode €229bn in CET1 capital across 64 banks
Landesbank Baden-Württemberg (LBBW) would fall below its supervisory leverage ratio requirement under the European Banking Authority’s (EBA) adverse scenario in this year’s stress test.
The German lender entered the test with a transitional leverage ratio of 4.41%, which would be halved to 2.21% by the end of the stress horizon in 2027. This outcome would leave the lender 79 basis points below its
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