The European Union Banking Authority (EBA) announced the results of the stress test conducted to test the resilience of banks in the region. 70 banks supervised by the European Central Bank (ECB) and representing about 75 percent of banking assets in the region were subjected to these tests.
According to the report published by EBA, it was stated that three banks did not have sufficient resilience under an adverse scenario. However, EBA did not disclose the names of these three banks. On the other hand, it was stated that the remaining banks remained resistant to a negative scenario and the resilience of the European Union banking sector was reaffirmed.
After the global financial crisis in 2008, the test that is regularly applied on banks in Europe and the USA in order to ensure financial stability and check the durability of the system is very important in terms of the signals it gives to the markets. This test, which is applied in order to prevent the widespread impact of a crisis that may arise in the financial sector on the entire global economy, is applied to banks in Europe and the USA even in stressful markets. These tests are conducted to measure the ability of banks to support the economy even in stressful markets and to determine how resilient they are against possible difficult economic situations.
