Where you satisfied with the 2025 EU-wide stress test results on 64 European banks covering 75% of EU total assets?
The stress test shows that European banks were resilient and able to provide credit to the economy in a very adverse and harsh scenario, with a 6% decline of GDP and unemployment rising by almost 6%: and this is reassuring. European banks are in a very good position now, they are well capitalized, they have good provisions and are profitable. They are able to generate income and be able to absorb losses and navigate in shocks.
Are you confident that the most important banks in Europe are resilient to the point that the weaknesses of Great Financial Crisis are a thing of the past?
Surely banks are better now compared to the times of the Great financial crisis: they are more capitalized and they are more prudent. And this is good. We are confident now that the banks can withstand a very adverse scenario. But supervisors and banks should not be complacent. There could be other events in the future to be concerned about: the stress test focuses on the assessment of geopolitical risks, such as the tariffs war, the fragmentation of global finances and trade, deterioration of investments. Banks have to look at the materialization of geopolitical risks, when for example banks are asked to divest from a country, as it happened for Russia after the war in Ukraine. Moreover there are other areas of concern such as cybersecurity, cyber attacks and operational resilience.
