On 20 January 2025, the European Banking Authority (EBA) launched its 2025 EU-wide stress test and released the macroeconomic scenarios.
The 2025 exercise covers a sample of 64 banks – 51 from the Eurozone – representing about 75% of EU banks’ total assets. The EU-wide stress test is conducted at the highest level of consolidation (group level).
Similar to previous exercises, the narrative of the adverse scenario for the stress test reflects the main risks for EU banks that have been identified by the EBA and the European Systemic Risk Board. Compared with past exercises, the adverse scenario puts greater emphasis on worsening geopolitical tensions, both in terms of escalation of conflicts and shocks to global trade and supply chains over the horizon and, as a result, a strong economic contraction.
The EBA expects to publish the results of the exercise at the beginning of August 2025.