This paper assesses the macroeconomic implications of the Basel III finalisation for the euro area, employing a large …-scale semi-structural model encompassing over 90 banks and 19-euro area economies. The new regulatory framework will influence … the reform, namely a transitory reduction in euro area gross domestic product (GDP) and in lending to the non …

share of non-performing loans (NPLs) on the balance sheets of euro area banks. The first is the coverage expectations for … assessment of the package is analysed via a semi-structural model, the Banking Euro Area Stress Test (BEAST). The coverage …

This paper presents an approach to a macroprudential stress test for the euro area banking system, comprising the 91 … largest euro area credit institutions across 19 countries. The approach involves modelling banks'reactions to changing … acknowledging a broad set of interactions and interdependencies between banks, other market participants, and the real economy. Our …