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The ECB Liquidity Stress Test 2019

Prometeia insights - White paper


The ECB Liquidity Stress Test 2019

The European Central Bank has included the assessment of banks’ resilience to liquidity shocks as one of its supervisory priorities for 2019.

Accordingly, it launched LiST, the Liquidity Stress Test Exercise, a sensitivity analysis of liquidity risk, involving about 100 significant banks directly supervised under the Single Supervisory Mechanism.

The exercise will allow the supervisor to assess the ability of each institution to survive idiosyncratic stress scenarios calibrated in a prescriptive manner by the ECB.

Here Prometeia gives an overview of the methodology and drivers behind the supervisory stress test of 2019.