The European Banking Authority welcomed today’s publication by the European Court of Auditors (ECA) of a special Report on the EU-wide stress test titled “EU-wide stress tests for banks: unparalleled amount of information on banks provided but greater coordination and focus on risks needed”. The EBA acknowledged the efforts made by the ECA in providing valuable insights to improve the efficiency of the EU-wide stress test in the future.
The latest bank stress test by the European Banking Authority (EBA) should have been more demanding in testing banks’ resilience to systemic risks across the EU, according to a new report by the European Court of Auditors. The simulated shocks were actually milder than those experienced during the 2008 financial crisis and the adverse scenario used did not appropriately reflect all relevant systemic risks to the EU financial system, say the auditors. In addition, when designing and carrying out the test, the EBA relied heavily on national supervisors, but lacked resources and could not oversee them effectively.
Keynote speech by Luis de Guindos, Vice-President of the ECB, at the CIRSF Annual International Conference 2019 “Financial Supervision and Financial Stability Ten Years after the Crisis: Achievements and Next Steps”, Lisbon, 4 July 2019
At its Annual General Meeting on Sunday 30 June 2019 in Basel, Switzerland, the BIS released its Annual Economic Report.
Speech by President Juncker at the European Central Bank Forum on Central Banking 2019 celebrating 20 years of the Economic and Monetary Union, ‘Building the euro: moments in time, lessons in history’ on 19 June 2019 in Sintra.
Working Paper Series No 2288 / June 2019
The composite cost-of-borrowing indicators for new loans to corporations and for new loans to households for house purchase remained broadly unchanged in April 2019, at 1.62% and 1.75%, respectively. In the same month, the euro area composite interest rate for new deposits from corporations and for new deposits from households also remained broadly unchanged at 0.11% and 0.37%, respectively.
Bruegel, the Centre for Economic Policy Research, and the European Center for Advanced Research in Economics and Statistics are co-hosting this event about the aftermath of the 2008 economic crisis. The legacy of the crisis is stronger and better capitalized banks, as well as regulators and supervisors with increased clout who pay more attention to systemic risk. However, the crisis has also left us with high leverage in advanced economies, especially in terms of sovereign dept over GDP. At the same time, interest rates are at very low levels. All of this, together with the digital disruption of the sector, poses formidable challenges for the banking industry.
The Key Attributes of Effective Resolution Regimes for Financial Institutions issued by the Financial Stability Board (FSB) are a core element of the policy measures adopted by the G20 in the wake of the Great Financial Crisis to address the problem of financial institutions (FIs) that are “too big to fail.” Those measures represent a two-pronged strategy to reduce both the probability and the impact of failure of systemically important FIs (SIFIs).
In the absence of any evidence demonstrating that the ECB committed a sufficiently serious breach of EU law, the General Court dismissed the action for compensation.
European Commission staff, in liaison with staff from the European Central Bank, visited Madrid on 7 and 8 May for the eleventh post-programme mission to Spain. Staff from the European Stability Mechanism participated in the meetings in the context of its Early Warning System.