Risk Management

EU banks withstand severe stress tests

By Justin Pugsley
BRR fallback image

As in the previous exercise, the main drain on capital would be credit losses and longer term, significant decreases in profitability, particularly net income, would also contribute to capital depletion. 

The authority modelled a scenario where EU GDP would fall by 3.6% and unemployment would hit 12.1%. The EBA excluded ...

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