Luca Bindi, LL.M.

. . . each bank will be asked to identify the most relevant geopolitical risk events that could lead to at least a 300-basis point depletion in its Common Equity Tier 1 (CET1) capital. In addition to reporting on how the geopolitical risk scenario would affect their solvency positions, banks will also be asked to provide information about how it may affect their liquidity and funding conditions.   The ECB gets speculative  

ECB to assess 110 directly supervised banks on the management of geopolitical risk Banks to define scenario that would lead to pre-determined outcome of at least 300 basis point depletion in CET1 Aggregate results to be communicated in summer 2026 ECB to assess banks’ stress testing capabilities to capture geopolitical risk