EBA stress test confirms strong capital position NWB Bank
30 July 2021NWB Bank has, as a significant bank, participated in the European Banking Authority (EBA) stress test exercise for the first time. The 2021 EU-wide stress test assesses the resilience of European banks under extreme adverse market developments over a period of three years.
The EBA stress test leads for NWB Bank under the baseline scenario to a CET 1-ratio of 45.7% at year-end 2023. In the adverse scenario the stress test results in a CET 1-ratio of 37.8%. In both scenarios, NWB Bank amply meets the minimum CET 1-requirement of 12.75% which consists of the total Pillar 1 capital requirement of 8%, the bank specific Pillar 2 capital requirement of 2.25% and the capital conservation buffer of 2.5%.
The EBA conducts this stress test every second year in cooperation with the European Central Bank (ECB), the European Systemic Risk Board (ESRB) and the Dutch Central Bank (DNB). The test does not contain a pass/fail threshold but the results will be used as input in the regular Supervisory Review and Evaluation Process (SREP) that is performed by the ECB.
The full stress test results can be found on the website of the European Banking Authority.