Many large European banks are emerging from early rounds of a key stress test in robust financial health, prompting some regulators to question whether to push harder at a time when investors are focused on the industry’s resilience.
Initial submissions to the European Banking Authority’s biennial assessment show several lenders’ capital ratios are higher than in previous exercises under the so-called adverse scenario, people with knowledge of the matter said, asking to remain anonymous as the submissions are private. That’s prompting the EBA and European Central Bank to lean on banks to be more conservative in subsequent rounds of the tests, which are set to conclude at the end of July.
Read More : Early Round of Stress Test Shows EU Banks Weathering the Storm