• The adverse scenario reflects ongoing concerns about the possible evolution of the COVID-19 pandemic coupled with a potential strong drop in confidence;
• The adverse scenario is designed to ensure an adequate level of severity across all EU countries;
• The EU-wide stress test will be conducted on a sample of 50 EU banks covering 70% of total banking...

The European Banking Authority (EBA) published today additional clarifications on the application of the prudential framework in response to issues raised as a consequence of the COVID-19 pandemic. These clarifications update the FAQ section of the EBA Report on COVID-19 implementation policies, which provides clarity on the implementation of (i) the...

The European Banking Authority (EBA) published today two final draft Regulatory Technical Standards (RTS) on (i) the criteria to identify all categories of staff whose professional activities have a material impact on the investment firm’s risk profile or asset it manages (‘risk takers’) and (ii) on the classes of instruments that adequately reflect the credit quality of the investment...

• After decreasing by 80bp in 2019 to 25%, in the first half of 2020, the asset encumbrance ratio went up to 27.5%.
• In the first half of 2020, the volume of total assets and collateral received rose by almost 10% while encumbered assets and collateral increased by more than 20%.

The European Banking Authority (EBA) published today its annual...