EBA sensitivity exercise

The EBA proposes modifying stress tests

European Banks: Asset Quality Ratios Are Not Proportional To The Extent Of Their Impairment Due To Covid19

Santander Corporate & Investment | Yesterday, the European Banking Authority (EBA) published a report with a preliminary assessment of the Covid-19 impact on the EU banking sector. The EBA flags up the fact that banks “entered the health crisis with strong solvency and liquidity reserves and managed the pressure on operational capacity by activating their contingency plans”. It also flags that “the crisis is expected to affect asset quality and therefore the future profitability of banks.