Stress test results for banks issued by end-July

The European Central Bank and the European Banking Authority (EBA) will this year perform stress tests on 99 credit institutions of the eurozone, including banks in Greece.

EBA plans to release the test results for each individual bank by the end of July 2023. The results will shed light on the impact of the adverse scenario on banks’ resilience. This year’s stress test will use parameters on net revenue from commissions for the first time.

Its baseline scenario on the Greek economy, to be used for the tests, provides for growth of 1.5% this year, 3% in 2024 and 2.8% in 2025. Greek unemployment is projected to ease from 11.5% in 2023 to 10.4% in 2024 and 9.4% in 2025. Real estate prices are projected to rise by 4.7% in 2023, rising by 3.4% in 2024 and 3% in 2025, while the inflation rate is projected to be 5.8% this year, 3.6% in 2024 and 2.5% in 2025.

Under the adverse scenario to be used in the tests, the Greek economy is projected to shrink by 1.9% this year and by 4.5% in 2024, rebounding to 0.9% in 2025.