COVID-19: How Will European Banks Fare?
Shekhar Aiyar (),
Andreas Jobst () and
Mai Chi Dao
No 2021/008, IMF Departmental Papers / Policy Papers from International Monetary Fund
This paper evaluates the impact of the crisis on European banks’ capital under a range of macroeconomic scenarios, using granular data on the size and riskiness of sectoral exposures. The analysis incorporates the important role of pandemic-related policy support, including not only regulatory relief for banks, but also policies to support businesses and households, which act to shield the financial sector from the real economic shock.
Keywords: Bank capital; stress test; COVID-19; bank profitability; corporate risk; EBA transparency Exercise; hurdle rate; return on assets; EBA sample; IMF staff calculation; ECB analysis; ECB-Banking Supervision; operating income; loan default; return on equity; debt service moratoria; working capital; Capital adequacy requirements; External balance assessment (EBA); Countercyclical capital buffers; Loans; Nonperforming loans; Global; Europe (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfdps:2021/008
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