News
EBA PUBLISHES THE RESULTS OF ITS 2023 EU-WIDE STRESS TEST
The European Banking Authority (EBA) published the results of its 2023 EU-wide stress test, which involved 70 banks from 16 EU and EEA countries, covering 75% of the EU banking sector assets. This stress test allows supervisors to assess the resilience of EU banks over a three-year horizon under both a baseline and an adverse scenario. The adverse scenario is characterised by severe negative shocks to economic growth, higher unemployment combined with higher interest rates and credit spreads. In terms of GDP decline, the 2023 adverse scenario is the most severe used in the EU wide stress up to now. The individual bank results promote market discipline and are used as part of the EU supervisory decision-making process.
ECB PUBLISHES SUPERVISORY BANKING STATISTICS ON SIGNIFICANT INSTITUTIONS FOR THE FIRST QUARTER OF 2023
Aggregate Common Equity Tier 1 ratio up to 15.53% in first quarter of 2023. Aggregated annualised return on equity up to 9.56% in first quarter of 2023. Aggregate non-performing loans ratio (excluding cash balances) decreased to 2.24%. Share of loans showing significant increase in credit risk (stage 2 loans) decreased to 9.31%. Read the full article here.
CENTRAL BANK MONITORING III/2023
Inflation continues to slowly fall in most of the countries under review, but remains high. After a pause in June, the US Fed raised the key interest rate range again in July, with other central banks also raising their rates. By contrast, in Poland the rates have already been lowered. Spotlight focuses on the communication of central bank forecasts and their related uncertainties. In our selected speech, BoE Deputy Governor Dave Ramsden describes the bank’s experience to date with quantitative tightening. The current issue is available here.
CENTRAL BANK MONITORING I/2023
Some of the central banks monitored continued to raise interest rates to combat high inflation, while others did not change their rates at recent meetings. During March, several central banks reacted to the problems of some banks and to increased tensions in financial markets. The Spotlight focuses on the actions of the Ukrainian central bank in the midst of war.
EBA LAUNCHES 2023 EU-WIDE STRESS TEST
The European Banking Authority (EBA) launched today the 2023 EU-wide stress test and released the macroeconomic scenarios. This year’s EU-wide stress test is designed to provide valuable input for assessing the resilience of the European banking sector in the current uncertain and changing macroeconomic environment.
ECB PUBLISHES SUPERVISORY BANKING STATISTICS FOR THE THIRD QUARTER OF 2022
Aggregate Common Equity Tier 1 ratio down to 14.74% in third quarter of 2022. Aggregated annualised return on equity stable at 7.55%. Aggregate non-performing loans ratio (excluding cash balances) fell further to 2.29%, down from 2.35% in previous quarter, while loans showing significant increase in credit risk (stage 2 loans) continued to grow slightly, standing at 9.79%. Read the full article here.
CENTRAL BANK MONITORING II/2023
Central banks in Central Europe left their interest rates unchanged, while the other central banks we monitor raised the rates further over the past three months. However, the US Fed also kept rates unchanged at its latest meeting in June. The Spotlight discusses monetary policy reviews, focusing on those conducted over the past year or recently announced. In our Selected Speech, ECB President Ch. Lagarde discusses the fragmentation of the global economy into competing blocs and its impact on the policy environment for central banks. The current issue is available here.
SMETANA’S LITOMYŠL FESTIVAL
We are thrilled to announce that our company will be sponsoring the upcoming Smetana’s Litomyšl festival, one of the most exciting cultural moments of the year! We are proud to be part of this wonderful event and to contribute to its success.
BANKS MUST SHARPEN THEIR FOCUS ON CLIMATE RISK, ECB SUPERVISORY STRESS TEST SHOWS
The results of the European Central Bank (ECB) climate risk stress test show that banks do not yet sufficiently incorporate climate risk into their stress-testing frameworks and internal models, despite some progress made since 2020. For more info click here.
CENTRAL BANK MONITORING
The Czech National Bank published its regular quarterly Publication of the Monetary Policy and Fiscal Analysis Department covers important monetary policy events in major foreign central banks. Actual Spotlight focuses on housing markets and their links with monetary policy. In the Selected Speech, member of the Fed’s Board of Governors Ch. Waller reflects on the implication of the conflicting data from the US economy.