French banks cry foul over EBA’s 2020 stress-test plan
Assumptions about the cost of household sight deposits are “not plausible”, critics say
French banks are taking issue with proposed changes to the European Banking Authority’s (EBA) stress-test methodology, which they say applies a funding shock to retail deposits that would be unaffected by a jump in interest rates.
The dispute concerns the treatment of household sight deposits, which can be withdrawn without notice and have historically paid zero interest in France.
“In France, there is no remuneration of sight deposits, but the methodology does not want to recognise that
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