Euro Zone Banks’ Days To Be Numbered In New ECB Bank-Run Simulation | 2/6/2019 | Staff
Cocoa_Candy12 (Posted by) Level 3
FRANKFURT (Reuters) – The European Central Bank will tell banks how many days they could last before going bust during a run on their cash, under a new stress test introduced on Wednesday.

Over the next four months, regulators at the ECB’s Single Supervisory Mechanism (SSM) will simulate “adverse and extreme hypothetical shocks in which banks face increasing liquidity outflows” to determine each bank’s “survival period”.

Exercise - Banks - Cash - Flows - Period

“The exercise will focus on banks’ expected short-term cash flows to calculate the ‘survival period’, which is the...
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