ECB next stress test to affect just 50-60 banks


The Single Supervisory Mechanism’s president Danièle Nouy confirmed that only around 50- 60 entities out of the 123 under the ECB’s surveillance will be subjected to the test.

The stress test’s methodology, as well as macroeconomic scenarios – both central and adverse – are still to be defined. However, factors like a bank’s size and its balance sheet components will remain in focus, along with the issue of significant risk coverage.

At the moment, the timing of the test is unknown. As Ms Nouy recently said, “discussions are starting right now on the exact time frame, exact number of banks and the characteristics of the exercise. You will know more in a few months, a couple of months, I guess”.