– Das Family Office Informationsportal

Executive summary
The Committee of European Banking Supervisors (CEBS) was mandated by the
ECOFIN of the European Council to conduct in cooperation with the European
Central Bank (ECB), the European Commission and the EU national supervisory
authorities a second EU-wide stress test exercise.

The overall objective of the 2010 exercise is to provide policy information for
assessing the resilience of the EU banking system to possible adverse economic
developments and to assess the ability of banks in the exercise to absorb
possible shocks on credit and market risks, including sovereign risks.
The stress test has been conducted on a bank-by-bank basis and using bank’s
specific data and supervisory information.

CEBS has coordinated the exercise and conducted extensive cross-checks over
the results, which were submitted to a peer review and challenging process in
order to ensure the consistency and comparability of the results. This report
provides details on the scenarios, methodologies and aggregate results of the
stress test exercise. Results of the individual banks and comments on follow-up
actions, where needed, are provided by the banks participating in the exercise
and/or their national supervisory authorities. The results are re-published by
CEBS on its website.

National supervisory authorities routinely conduct stress testing exercises in their
respective jurisdictions, both at system-wide and individual institutions’ levels, in
order to assess potential risks facing the institutions individually and/or
collectively. The CEBS exercise is intended to complement these national
analyses by providing a coordinated assessment of European banks, using
common scenarios and methodologies.

However, as with any stress test exercise, the results are not forecasts of
expected outcomes, since the scenarios are designed as "what-if" situations
reflecting extreme assumptions, which are therefore not very likely to
materialise. Against this background, the aggregate results discussed in this
report as well as the individual results presented by banks and/or national
supervisory authorities, aim at supporting the supervisory assessment of the
adequacy of capital of European banks, and should be interpreted with caution.