Frequently asked questions about the 2025 stress test for euro area banks

The European Central Bank (ECB) and the European Banking Authority (EBA) have released a detailed FAQ on the 2025 stress test for euro area banks. It is designed to assess the resilience of 96 major banks under severe economic scenarios. The test simulates adverse events like rising tariffs, disrupted supply chains, and inflation shocks to evaluate how banks can withstand economic pressures and maintain capital adequacy. This exercise is critical for identifying vulnerabilities in the banking sector and guiding future supervisory measures to safeguard financial stability in the eurozone. It also reflects ongoing efforts to integrate emerging risks, including climate-related financial threats, into the oversight framework. For more details, visit the official ECB’s webiste.