ECB testing banks’ ability to deal with a second wave of Covid-19 – Enria
ECB head of supervision stresses banks are reluctant to use buffers because of market reaction
The European Central Bank is testing banks’ resilience to a second wave of Covid-19 contagion, said Andrea Enria, chair of the ECB’s Supervisory Board.
In a meeting with journalists today (June 9), Enria confirmed the Single Supervisory Mechanism (SSM) was currently implementing so-called vulnerability analysis. This aims to assess how banks would perform under the macroeconomic scenarios foreseen by the ECB. In May, ECB staff projected three scenarios including GDP contractions of 5%, 8% or 12
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