CEBS' s statement on stress testing exercise

12 May 2009

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.

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