European Central Bank Publishes Results of Bank COVID-19 Vulnerability Analysis

The European Central Bank Banking Division has published the results of the COVID-19 vulnerability analysis it conducted on Eurozone banks directly prudentially supervised under the Single Supervisory Mechanism. The analysis was designed to establish how 86 Eurozone banks would be impacted by the COVID-19 pandemic and any vulnerabilities that may arise over a three-year horizon.

Two scenarios were tested: a central scenario, deemed to be the most likely to materialize, and a severe scenario, representing a more adverse reaction to COVID-19. Under both scenarios, the ECB found that banks could withstand the pandemic-induced stress, although under the severe scenario several banks would have to take action to ensure ongoing compliance with minimum capital requirements.

View the results of the ECB's bank vulnerability analysis.

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