European banks could withstand severe crisis, ECB says

What would happen to the banks if the health crisis dragged on and turned into an economic cataclysm?

This is the question to which the stress tests set up by the European Central Bank (ECB) and the European Banking Authority (EBA), the gendarmes of the sector, had to answer.

The exercise is to subject the banks to a catastrophic economic scenario and see if they can withstand the shock.

In the worst-case scenario adopted for the 2021 edition, 50 European establishments (70% of the sector's assets) had to study the effects on their accounts and their own funds of a prolonged period (three years) of health and economic crisis coupled with a

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For the ECB, the result of this test is reassuring.

Stress tests, the results of which were presented on Friday evening, show that

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