Overview

• The EBA tested 64 banks, including 51 euro-zone lenders, under a severe macroeconomic scenario shaped by rising tariffs and geopolitical tensions.
• The adverse scenario drives a 6.3 percent contraction in EU output through 2027 and banks incur combined losses of €547 billion, up from €496 billion in 2023.
• No institution breaches its core equity requirement and only one fails the leverage ratio, reflecting strengthened buffers since the 2008 crisis.
• Aggregate common equity Tier 1 ratios would fall to 12.1 percent by 2027 from 15.8 percent under the transitional CRR3 framework.
• Supervisors will apply dividend and bonus restrictions to 17 banks as part of their Pillar 2 capital review.