EBA Stress Tests

A New Benchmark for European Banks

EU-wide EBA stress tests were introduced in the wake of the 2008 financial crisis and are currently supervised by the European Banking Authority (EBA).

As elsewhere, stress tests in Europe are becoming more frequent, more complex and place a greater administrative burden on the participants. They are not just a risk analysis, but a powerful differentiator of a bank’s performance in a highly competitive market. A poor result in the EBA stress tests can be costly in terms of both capital and reputational damage. Many banks struggle to run the required processes in a cost efficient manner while still delivering the required level of granularity and consistency.

Our Approach

Fintegral has been performing stress tests for leading international banks since 2010. Our clients include US, British and Swiss financial institutions. We support them in all aspects of stress testing and every type of exposure, from banking book to trading book. We have provided strategic advice, informed risk identification, model development (market risk, credit risk, operational risk, country risk, funding risk, business risk, investment risk, pension risk) and delivered associated documentation.

Our Experience

  • Supporting a top tier European bank in stress testing for CCAR: risk identification, development, documentation, testing, governance, strategic advice. Covering trading and banking books.
  • Supporting a top tier European bank in optimising its stress testing abilities in a highly complex trading environment.
  • Building and validating macroeconomic models for stress testing in a major UK bank.