The European banking sector appears to be resilient even in the worst-case scenarios developed by the European Banking Authority (EBA) in connection with the pandemic, according to its latest report on the EU-wide stress tests of banks, published at the end of the day on Friday 30 July.
Thus, in its worst-case scenario, which the authority itself considers “very severe”, the European banking sector would remain above a CET1 ratio of 10%, with a capital reduction of €265 billion...