The European Banking Authority (EBA) began the 2020 banking stress test exercise on Friday 31 January, the results of which will be published on 31 July.
For the first time, the scenario chosen is based on an EU-wide economic recession linked to an environment of low or even negative interest rates over an extended period (‘lower for longer narrative’), all in an environment characterised by strong international trade tensions.
In the worst-case scenario, the Union's GDP would fall by...