The European Central Bank (ECB) has completed a comprehensive assessment including stress test of four banks.

The four lenders were Italy’s Cassa Centrale Banca and Iccrea Banca, Estonia’s Luminor Bank AS and Lithuania’s Akcinė bendrovė Šiaulių bankas.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Under the test, the lenders did not face any capital shortfalls.

The stress test involved testing the resilience of the banks under an adverse scenario involving period of sharp economic contraction following the outbreak of the Covid-19 pandemic. It was conducted using the 2020 EU-wide stress test methodology.

The stress test comes after the four lenders fell under the ECB’s supervision.

The banks also cleared the asset quality review (AQR), however, they are expected to follow-up and initiate actions to address the findings of the AQR.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a statement, ECB said: “The AQR is a prudential rather than an accounting exercise, and provides the ECB with a point-in-time assessment of the carrying values of a bank’s assets on a particular date (31 December 2019 in the case of these four banks).

“The AQR also determines whether there is a need to strengthen a bank’s capital base. Owing to the nature of the AQR as a point-in-time exercise and given that the reference date used pre-dates the outbreak of the coronavirus (COVID-19) pandemic in Europe, the AQR results do not include the impact of the ongoing COVID-19 crisis.

“The AQR for the banks was carried out on the basis of the ECB’s latest version of the AQR methodology, which was published in June 2018.”