In May 2009, the Economic and Financial Affairs Council (ECOFIN) mandated the Committee of European Banking Supervisors (CEBS) to coordinate with the European Commission and the European Central Bank, an EU-wide forward-looking stress test of the banking system, building on common guidelines and scenarios, for a sample of 22 major European cross-border banking groups. The objective of the exercise was to increase the level of aggregate information among policy makers in assessing the resilience of the European financial system.

CEBS has now published a press release on the results of the EU-wide stress test.

In the press release CEBS states that EU Ministers and Governors welcomed the exercise and appreciated that under the conditions applied large EU banks appear sufficiently capitalised to head off a severe macroeconomic deterioration. They stressed at the same time that banks should continue strengthening their financial position, whilst ensuring a continued availability of credit to the economy. They will continue to closely monitor the situation and intend to react as appropriate, if needed, in a coordinated manner.

View CEBS’s press release on the results of the EU-wide stress testing exercise, 1 October 2009