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What was the 2014 European Union bank stress test?

2014 European Union bank stress test

The 2014 European Union bank stress test was the latest in a series of tests designed to assess the resilience or otherwise of the EU's banking system. In all, 123 banks were subjected to the test, of which 24 failed.

Where have you heard about the 2014 European Union bank stress test?

As an investor, you may have become aware of the 2014 European Union bank stress test in relation to banks whose shares you hold or in which you have deposited cash. Financial media may refer to this and other EU bank stress tests.

What you need to know about the 2014 European Union bank stress test.

The 2014 European Union bank stress test was carried out buy the European Banking Authority (EBA), one of a number of such tests in the wake of the 2008 financial crisis. The aim was to judge the ability of the European banking system to withstand a second such crisis, thus the EBA drew up an 'adverse scenario' - a simulated crisis arising from a global recession - and tested the banks concerned as to how well or otherwise they could cope with such a situation in terms of their capital. The 24 banks that failed would have fallen short of EBA capital requirements by a total of €24.6 billion.

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