The 2018stress test conducted by the European Banking Authority (EBA) to assess the resilience of the EU financial system and banks in the event of shocks, such as a severe recession or stock market crash, should have been more “demanding”, according to a report by the European Court of Auditors (ECA) published on Wednesday 10 July.
According to the Commission, the simulated shocks were in fact less severe than those experienced during the 2008 financial crisis, while the adverse...