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EU-wide banking stress test 2014


On the 26th october 2014 the results of a stress test of the 123 largest european banks were released. All banks belonging to the group of the german Landesbanken passed the stress test.

My task during the stress testing exercise was to model the credit risk arising from the portfolio of shipping loans of the NORD⁄LB group. Due to the severe economic crisis of the shipping industry and the large involvement of german banks in this business, shipping loans were a major concern for supervisors during the stress test. The stress test itself was a large project for every bank under scrutinity which required many month of work and involved several auditing firms.

In the following you can find the official results of the stress test as released by the european banking authority (EBA). In addition you can find the guidelines for performing the asset quality review (AQR), the stress test itself and a join-up of results from both phases as released by the european banking authority (EBA) and european central bank (ecb): The stress test for the european banking system has been covered extensively by the press. In the following you can find a list of articles related to the overall stress test results, the NORD⁄LB-group and on shipping loans as an important source for credit risk (all articles in german):