EBA to test banks’ resilience in adverse Brexit scenario

European Banking Authority
European Banking Authority offices in London

The stress tests the European Banking Authority will carry out in 2018 will feature an adverse scenario including risks associated with Brexit, the institution said on January 31.

The adverse scenario under the tests indicates how European Union agencies envisage a potential crisis developing around Brexit. Though not a forecast, the EBA says the scenario is based on what it views as the “most material” threats to the stability of the banking sector.

The EU and the UK government still need to

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