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Ten years of bank stress tests in Europe and the United State
[Dix années de tests de résistance bancaires en Europe et aux États-Unis]

Author

Listed:
  • Boubacar Camara

Abstract

In response to the 2007-09 financial crisis, supervisory authorities reinforced bank stress tests, with the aim of safeguarding financial stability. The implementation of these tests differs in Europe and the United States. European tests cover all large and medium-sized banks. They are carried out by the banks themselves using their own internal methods under constrained rules, and the results are verified and validated by the supervisor. US tests are carried out on smaller samples of the largest banks, using models developed by the supervisor. The analysis in this Bulletin shows that the tests applied to European banks have increased in severity. Since 2014, European banks – including those that were initially most fragile – have increased their solvency indicators to a greater extent than their US peers. However, large banks in both monetary areas have strengthened their resilience to economic and financial shocks À la suite de la crise financière de 2007-2009, les autorités de supervision ont renforcé les tests de résistance appliqués aux banques afin d’améliorer la stabilité financière. Leur mise en œuvre diffère entre les États-Unis et l’Europe. Les tests européens concernent toutes les banques de grande taille et de taille intermédiaire. Ils s’appuient sur les méthodes internes à chaque établissement et une méthodologie contraignante de vérification et validation du superviseur. Les tests américains procèdent sur des échantillons plus réduits des plus grandes banques et sont conduits exclusivement à partir des modèles du superviseur. D’après l’analyse effectuée, les banques européennes ont été soumises à des tests d’une sévérité croissante.

Suggested Citation

  • Boubacar Camara, 2025. "Ten years of bank stress tests in Europe and the United State [Dix années de tests de résistance bancaires en Europe et aux États-Unis]," Bulletin de la Banque de France, Banque de France, issue 257.
  • Handle: RePEc:bfr:bullbf:2025:257:04
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    References listed on IDEAS

    as
    1. Berrospide, Jose M. & Edge, Rochelle M., 2024. "Bank capital buffers and lending, firm financing and spending: What can we learn from five years of stress test results?✰," Journal of Financial Intermediation, Elsevier, vol. 57(C).
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