The Committee of European Banking Supervisors (CEBS) today publishes its statement on stress testing exercise.
- Supervisory authorities in the EU area, in the context of their regular risk assessment of the financial sector, carrying out an EU-wide forward looking stress testing exercise on the aggregate banking system.
- This is not a stress test to identify individual banks that may need recapitalization, as the assessment of specific institutions' needs for recapitalization remains a responsibility of national authorities.
- This test builds on common scenarios and guidelines developed by the Committee of European Banking Supervisors (CEBS).
- The objective is an EU-wide exercise with common guidelines and scenarios, so as to increase the level of aggregate information among policy makers in assessing the European financial system's potential resilience to shocks and to contribute to the convergence of best practices in the EU.
- CEBS’ next regular risk assessment will be ready by September 2009. The outcomes are confidential.
The European Banking Authority was established by Regulation (EC) No. 1093/2010 of the European Parliament and of the Council of 24 November 2010. The EBA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS). The EBA acts as a hub and spoke network of EU and national bodies safeguarding public values such as the stability of the financial system, the transparency of markets and financial products and the protection of depositors and investors.