In 2020, the European Banking Authority (EBA) launched a public consultation on future changes to the European Union wide stress test (EUWST). The EBA proposes a dual approach across four broad criteria of relevance, comparability, transparency, and cost efficiency: a supervisory leg as the...

This paper presents a critical analysis of some of the techniques which are applied in practice to obtain composite indicators from a previous sub-indicator system. In studying each methodology, we identify the advantages and disadvantages associated with them, paying particular attention to...