Statement: 2021 EU-wide and ECB stress test results

The European Banking Authority (EBA) has today published the outcome for banks that participated in the 2021 EBA EU-wide stress test. Further, and for the first time, the European Central Bank (ECB) has also published high level information on the outcome of the parallel Single Supervisory Mechanism (SSM) stress test of banks directly supervised by the ECB but which were not included in EBA EU wide stress test. The exercises were conducted in cooperation with competent authorities (including the Central Bank of Ireland), the European Commission (EC) and the European Systemic Risk Board (ESRB).

Allied Irish Banks Group plc and Bank of Ireland Group plc were subject to the EBA EU wide stress test exercise. Citibank Holding Ireland Ltd, Bank of America Europe DAC and Ulster Bank Ireland DAC were subject to the parallel SSM stress test. The results for the Irish banks are available at the following links:

View results for Allied Irish Banks Group plc (PDF 5.33MB)

View results for Bank of Ireland Group plc (PDF 5.33MB)

View information on the results for Citibank Holding Ireland Ltd, Bank of America Europe DAC and Ulster Bank Ireland DAC

EBA press release and related materials

ECB Press Release and related materials and FAQ

The stress test is not a pass or fail exercise and no threshold is set to define the failure or success of banks for the purpose of the exercise. Instead, the findings of the stress test will inform the 2021 Supervisory Review and Evaluation Process for banks, which is conducted by Joint Supervisory Teams made up of staff at the European Central Bank and the Central Bank of Ireland.

Commenting on the 2021 EU-wide and the SSM stress test results, Director of Credit Institutions Supervision, Mary-Elizabeth McMunn said -

“Overall, the impact of the stress test is more severe than the results from the 2018 exercise, reflecting a more severe scenario. Nevertheless, even though uncertainties currently remain high, the benefits of resilience built up in recent years are evident, with banks having sufficient capital to absorb the impact of the severe scenario.”

Note

The Irish banks participating in the EBA EU wide stress test and the SSM stress test are subject to supervision by the European Central Bank via the Single Supervisory Mechanism (SSM). The main aims of supervision via the SSM are to ensure the safety and soundness of the European banking system and to increase financial integration and stability in Europe.