AMB will subject 110 banks to a geopolitical risk test.

Geopolitical Risk Testing Service by ECB

European Central Bank (ECB) has designated 110 major banks in the Euro Area to conduct a resilience test against geopolitical risks in 2026. In this context, a detailed review of the banks' current risk assumptions will be carried out.

Purpose and Scope of the Test

In its announcement, the ECB emphasized that the mentioned stress test aims to identify specific vulnerabilities of banks and improve risk management. The ECB stated that geopolitical risks could affect many areas, from financial markets to the operations of banks.

Effects and Process of the Test

Additionally, this test will also examine the effects of political shocks on banks' liquidity and refinancing conditions. The ECB will evaluate how compatible the stress testing capabilities of banks are with geopolitical risks, in addition to publicly disclosing the test results in summer 2026.

These studies, conducted every two years, aim not to directly affect banks' capital requirements but are expected to include identified weaknesses in the annual audit process.

Future Scenarios and Assessments

Furthermore, the ECB announced that next year's stress test will allow banks to determine their capital strength and develop potential risk scenarios within the framework of the Internal Capital Adequacy Assessment Process. In the 2026 thematic stress test, banks will be asked to evaluate which geopolitical scenarios could significantly impact their payments.