The European Banking Authority (EBA) unveiled, on Tuesday 31 January, the methodology it will apply in the context of the stress tests designed to screen the soundness of 70 large banks in the European Union plus Norway (20 more financial institutions than in 2021), thus covering 75% of total banking assets.
The European authority has devised an adverse three-year socio-economic scenario for the EU that is harsher than in previous editions. According to this scenario, the persistence of...