2026 Geopolitical Risk Reverse Stress Test: Final Results
How prepared are euro area banks to identify and withstand geopolitical shocks that could threaten their capital positions? The European Central Bank (ECB) has published the results of its 2026 thematic reverse stress test on geopolitical risks, covering 110 euro area banks under direct ECB supervision. The exercise — part of the ECB’s supervisory priorities […]
Strengthening the Going-Concern Role of AT1: Options and Trade-offs
Are Additional Tier 1 (AT1) instruments actually functioning as going-concern capital — or have they become, in practice, a gone-concern tool? The Financial Stability Institute’s (FSI) latest report warns that the sector has never been stress-tested through a severe economic downturn, leaving leverage and borrower credit quality vulnerabilities untested. Key concerns include deepening ties between […]