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European banks (supposedly) weather a stress test that simulates trade shock. 🤔 64 lenders in the stress test saw their main capital ratio slide by 3.7 percentage points to 12.1% under an adverse scenario, the European Banking Authority said in a statement on Friday. That’s
European banks weathered a simulation of the potential impact of major international trade shocks, underscoring their ability to continue paying dividends and buying back shares https://t.co/ay9U7wGOjt
European banks weathered a simulation of the potential impact of major international trade shocks, underscoring their ability to continue paying dividends and buying back shares. $DB $UBS $BARC The 64 lenders in the stress test saw their main capital ratio slide by 3.7
European lenders demonstrated improved resilience in the European Banking Authority’s 2025 stress test, which modelled a severe international trade shock. The aggregate impact on the 64 banks examined reduced their Common Equity Tier 1 capital ratio by 3.7 percentage points, leaving the measure at 12.1% under the most adverse scenario. The exercise showed total capital depletion of 370 basis points, narrower than the 459-basis-point hit recorded in the 2023 test. The EBA said the results indicate that banks would be able to absorb significant losses while maintaining the capacity to continue dividend payments and share buybacks.
