03-August-2025
Economy News
 
EU Banks Can Weather Recession Driven by Global Trade War, Stress Test Shows
02-Aug-2025

Banks across the European Union are strong enough to weather an economic shock driven by geopolitical and trade tensions, the European Banking Authority said on Friday as it presented the outcome of its latest health check of the sector. The EBA tested how 64 European banks, including 51 euro zone lenders, would react to a prolonged recession across the EU and other advanced economies, finding none would breach their core capital requirement, and only one would breach its leverage requirement.

News Source:- https://money.usnews.com/investing/news/articles/2025-08-01/eu-banks-can-weather-recession-driven-by-global-trade-war-stress-test-shows