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  "documentTitle": "2023 EU Wide EBA Stress Test Our First Glance at Results",
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  "authorName": "Alvarez & Marsal",
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      "text": "2023 EBA Stress Test Results are out – Although results show the second highest capital depletion in stress history, given strong capital positions, remaining buffers and improved profitability, most banks will be able to increase dividends and share buybacks.",
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      "text": "...banks demonstrate strong resilience to weather a stress due to improved NII and NPL starting positions; No incremental capital needs with only one bank falling below the 5.5% old CET1 minimum threshold and 18 banks falling below 9% CET1 (25% of total); Capital flexibility (measured as the buffer between CET1 post stress test and minimum threshold of 5.5%) increases to 488bps from 466bps in 2021; Regardless high stress test capital depletion and due to improving profitability trends in the sector we expect further increases in bank dividend and buybacks; Report shows winners and losers after application of P2G approach",
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      "text": "Stress Test Impacts; Capital Distribution; Summary by Country; Stress Tests Going Forward",
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      "text": "ECB will run a Cyber Resilience Stress and EBA will lead a Climate Risk Stress Test during 2024; The ECB Cyber Resilience Stress Test in 2024 expected to target the integrity of the database(s) supporting the main core banking system and simulate loss impact, response and recovery actions undertaken by the Bank; Climate Stress Test 2024 – Fit-for-55 exercise to assess the resilience of the financial sector, focusing on the capacity of the financial system to support the transition to a lower carbon economy, even under conditions of stress",
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      "text": "Countries most impacted are those with least income generation capabilities to offset capital depletion; Worst 5 countries by CET1 depletion: Denmark: -625bps, France: -592bps, Germany: -577bps, Ireland: -549bps, Netherlands: -523bps; Best 5 countries by CET1 depletion: Hungary: -77bps, Poland: -170bps, Norway: -212bps, Greece: -228bps, Spain: -242bps",
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      "text": "Impact of 2023 EBA Stress Tests shows average capital depletion (2022 CET1 to adverse) of 459bps, 26bps lower than depletion observed in 2021 EBA Stress Tests (485bps); Higher depletion explained by more severe scenario and higher quality assurance impact estimated at 175bps vs. 100bps average in the past (1/3 of impact); As expected EBA Stress Test results do not generate any major surprises and demonstrate strong capital resilience of the banking sector",
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      "text": "CET1 depletion: 459bps",
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      "text": "2023 EBA Stress Test Results are out – Although results show the second highest capital depletion in stress history, given strong capital positions, remaining buffers and improved profitability, most banks will be able to increase dividends and share buybacks.",
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