EU stress tests not as tough as financial crisis
Projected GDP decline for Spain, Ireland and Italy milder than during the credit crunch
The European Banking Authority’s 2018 stress tests were not as tough as the financial crisis for a majority of banks, the European Court of Auditors (ECA) found.
The peak-to-trough GDP decline simulated by the EBA’s adverse scenario was less than that experienced during the financial crisis for nine EU member states that had lenders that participated in the tests.
Using this benchmark, Spanish banks were the least tasked by the stress tests. The EBA scenario projected a 1.8% fall to domestic
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