We develop a novel stress testing framework to quantify the risks to the German banking sector from the green transition. Our methodology combines a macro-level and a micro-level approach to calculate scenario-dependent probabilities of default and losses. The macro approach leverages...

Over the past decade, the Albanian banking sector has undergone a remarkable transformation amid strong macroeconomic performance and sound financial reforms. Nevertheless, pockets of vulnerability remain, including some that were identified during the IMF's 2014 Financial Sector Assessment...

This technical note focuses on systemic risk analysis and stress testing as part of the Slovak Republic's Financial Sector Assessment Program. The FSAP for the Slovak Republic implemented an extensive analysis of systemic risks and assessed the resilience of the banking sector. It identified key...

The technical assistance mission developed a multi-factor, multi-period solvency stress testing framework for banks supervised by the Central Bank of Barbados (CBB) and credit unions supervised by the Financial Services Commission (FSC). This framework is built around explicit macroeconomic...

This study investigates the impact of supervisory stress testing on banks' behaviors and their systemic risk implications. Utilizing confidential supervisory data from the European Banking Authority's EU-wide stress tests in 2021 and 2023, we employ a difference-in-differences framework to...

In this handbook, we define a cyber stress test as 'a targeted assessment of the resilience of individual organisations and their ability to withstand and recover from significant cybersecurity incidents, ensuring the provision of critical services, in different risk scenarios.' Stress tests...

Do climate stress tests affect bank credit supply to brown firms? Using a difference-in-differences approach and detailed data on individual bank loans in the euro area, this paper provides novel evidence on the effects of the ECB's 2022 climate risk stress test. Despite no capital implications...

ECB Banking Supervision has concluded its 2025 solvency stress test for euro area significant institutions. A total of 51 significant institutions directly supervised by the ECB took part in the EU-wide stress test coordinated by the European Banking Authority (EBA) in cooperation with the...