On 4th November, when 130 leading European banks got over direct control of ECB, the EU institutions agreed to establish a bank supervisory mechanism named Banking Union.
The first task for Banking Union was a thorough year-long examination of the resilience of 130 leading European banks. The stress was put on banks reliability in case of deterioration of the macroeconomic situation.
Nevertheless the largest banks of Europe worked hard the last years to increase their reliability, 25 of 130 banks failed this stress test. Although 12 of them managed to meet the requirements until the November 2014, 13 of them are still in risk zone (please see the picture). The banks will have to cover the capital shortfall.
All the three Latvian banks, including AB.LV bank, subject to the comprehensive assessment have demonstrated good performance and passed this exam.