On the routinisation of stress testing in Europe

On the routinisation of stress testing in Europe

            

En résumé

In spite of using stricter macro-financial assumptions and methodological standards, the results of the European Banking Authority's latest round of stress tests contained few surprises relative to the 2016 exercise. As the banking sector gets stronger and rids itself of its weakest links, stress tests are, in the market's eyes, looking increasingly like a routine exercise.