Cover Departmental Papers
COVID-19: How Will European Banks Fare?
Author: Mr. Shekhar Aiyar, Mai Chi Dao, Mr. Andreas A. Jobst1, Ms. Aiko Mineshima, Ms. Srobona Mitra, and Mahmood Pradhan2
  • 1 https://isni.org/isni/0000000404811396, International Monetary Fund
  • | 2 https://isni.org/isni/0000000404811396, International Monetary Fund
Series:
Departmental Papers
Volume/Issue:
Volume 2021: Issue 008
Language:
English
Publication Date:
26 Mar 2021
DOI:
https://doi.org/10.5089/9781513572772.087
ISBN:
9781513572772
ISSN:
2616-5333
Pages:
114
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
Legal-disclaimer:
The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund