FRANKFURT (Reuters) -The European Central Bank will test banks’ resilience to geopolitical risk next year, telling them to come up with scenarios that would wipe out large chunks of their capital, chief ECB supervisor Claudia Buch said on Tuesday.
“In the 2026 thematic stress test exercise, we will follow up on this year’s stress test by asking banks to assess which firm-specific geopolitical risk scenarios could severely impact their solvency,” Buch told the European Parliament.
(Reporting By Francesco Canepa)
