EU’s 2020 stress tests are toughest to date
Real GDP projected to contract –4.3% over three-year scenario horizon
The European Banking Authority’s (EBA) 2020 stress tests will pit lenders against the most severe recession simulation in the exercise’s near 10-year history.
The adverse macroeconomic scenario for the latest iteration of the tests assumes a cumulative European Union real GDP decline of –4.3% by 2022. This compares with contractions of –2.7%, –1.8% and –2.1% in the 2018, 2016 and 2014 tests, respectively. However, it falls short of the –5.7% experienced over the course of the global financial
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