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Supervisory Exercises

In the context of the supervisory assessment process, national supervisory authorities and central banks regularly carry out stress tests on supervised institutions.

These exercises examine the resilience of credit institutions under hypothetical adverse scenarios in order to estimate the amount of capital required to absorb losses should these adverse scenarios materialise and the potential systemic risk.

The exercises conducted at EU level are carried out on the basis of common guidelines, methods and scenarios. The coordination and execution of the European stress tests falls within the responsibilities of the European Banking Authority (EBA) and they are carried out in cooperation with the European Systemic Risk Board (ESRB) and the European Central Bank (ECB).