Statement: 2023 EU-wide and ECB stress test results

The European Banking Authority (EBA) have today published the outcome for banks that participated in the 2023 EBA EU-wide stress test. In addition, the European Central Bank (ECB) has also published high level information on the outcome of the parallel Single Supervisory Mechanism (SSM) stress test of banks directly supervised by the ECB but which were not included in EBA EU-wide stress test.

AIB Group plc, Bank of Ireland Group plc, Barclays Bank Ireland PLC and Citibank Holdings Ireland Limited plc were subject to the EBA EU-wide stress test exercise. Bank of America Europe Designated Activity Company was subject to the parallel SSM stress test.

The results for the Irish banks are available at the following links:

View results for AIB Group plc

View results for Bank of Ireland Group plc

View results for Barclays Bank Ireland PLC

View results for Citibank Holdings Ireland Limited   

View information for Bank of America Europe Designated Activity Company

EBA press release and related materials

EBA press release on the ad-hoc analysis on banks’ bonds holdings

ECB Press Release and related materials and [FAQ]

ECB press release on the unrealised losses in banks’ portfolios of bonds measured at amortized cost

The stress test is not a pass or fail exercise and no threshold is set to define the failure or success of banks for the purpose of the exercise. Instead, the findings of the stress test will inform the 2023 Supervisory Review and Evaluation Process for banks, which is conducted by Joint Supervisory Teams made up of staff at the European Central Bank and the Central Bank of Ireland.

Commenting on the results, Director of Credit Institutions Supervision, Mary-Elizabeth McMunn said: “Though the scenario is on balance more severe, the impact of the stress test is less severe than the results from the 2021 exercise, reflecting the changed interest rate environment. While uncertainty is currently high, the benefits of resilience built up in recent years are evident, with banks having sufficient capital to absorb the impact of the severe scenario.”

Note

The Irish banks participating in the EBA EU-wide stress test and the SSM stress test are subject to supervision by the European Central Bank via the Single Supervisory Mechanism (SSM). Key aims of supervision via the SSM are to ensure the safety and soundness of the European banking system and to increase financial integration and stability in Europe.