To this end, the EBA has the right to conduct the EU-wide stress tests, in cooperation with the European Systemic Risk Board (ESRB).
In 2014, the ECB performed the Comprehensive Assessment in parallel before taking over its supervisory role under the new policy of European Banking Supervision on November 4, 2014.
The stress test relied on a static balance sheet assumption implying no new growth and a constant business mix and model over the whole time horizon.
Whether a bank passed the stress test was determined according to the resulting Common Equity Tier 1 (CET1) ratio under the baseline and adverse scenario.
In addition, 16 banks did not clear the hurdle rate of 8% in the baseline scenario after adjustments due to the AQR, with an aggregate shortfall of 9.4 billion EUR.