EU Stress Test Confirms Stronger European Banks

The Financial Times reports that the EU’s latest banking stress test shows European banks are now far stronger than in previous years, with healthier profitability, robust capital buffers, and greater resilience against potential shocks. This matters because a stable banking sector underpins Europe’s ability to weather geopolitical uncertainty, rising interest rates, and external economic pressures. For policymakers, it signals that the euro area’s financial system is better prepared to support investment, credit flows, and economic growth key elements for Europe’s strategic autonomy and credibility in global financial governance. Read the full report on Financial Times.