New EU bank stress tests will be impossible to fail

Some 53 EU banks will undergo a stress test with a difference next year: None of them will fail.

The European Banking Authority stress test will not judge banks against a single capital threshold as in previous exercises.

The results are intended to be used by supervisors in their annual review of banks’ resilience, “under which decisions are made on appropriate capital resources and forward-looking capital plans are challenged”, the EBA said.