EU Stress Test In The Hands Of National Supervisors

The European Banking Authority (EBA) has released the first details about this year’s stress tests, meant to provide regulators and markets with reliable information about how EU banks would weather another crash, but it’s leaving a lot of the legwork to national regulators.

Reliability rests with national supervisory groups

“The assessment of the reliability and robustness of banks’ assumptions, data, estimates and results will rest with the CAs [competent authorities] and for the SSM [single...