European banks are more robust in 2025 than in 2023, according to the European Banking Authority (EBA) when it published its biennial banking stress test on Friday 1 August.
If an adverse macroeconomic scenario were to materialise, the 64 banks analysed (51 of which are based in the euro area), which account for 75% of total banking assets in the European Union, would suffer cumulative capital losses of €547 billion over three years. These losses would be distributed as follows:...