Budnik, Katarzyna Barbara; Balatti, Mirco; Covi, Giovanni; … - 2021
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 … results highlight the importance of the starting level of bank capital, bank asset quality, and banks’ adjustments for the …