Publications on Resilience

Speech by Anneli Tuominen, Member of the Supervisory Board of the ECB, at the conference “The Current Hybrid Threat Environment and Financial Stability”, jointly organised by Commerzbank and the European Centre of Excellence for Countering Hybrid Threats

Stress tests are of crucial importance to assess banks’ resilience under adverse economic conditions. In previous stress tests, however, some banks submitted overly optimistic projections. Despite thorough quality assurance by supervisors, this behaviour makes it more likely that the risks some banks face are underestimated. To address this, we are now taking a closer look at insufficiently prudent projection submissions. In line with our supervisory focus on banks’ risk data aggregation and reporting capabilities, we are also looking more closely at poor data quality issues in stress tests.