AMB will subject 110 banks to a geopolitical risk test.

ECB's Geopolitical Risk Testing Service

European Central Bank (ECB) has identified 110 major banks in the Eurozone to conduct a resilience test against geopolitical risks in 2026. In this context, a detailed examination of the banks' current risk assumptions will be conducted.

Purpose and Scope of the Test

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 can have effects on many areas, from financial markets to the operations of banks.

Effects and Process of the Test

Additionally, this test will also examine the impacts of political shocks on banks' liquidity and refinancing conditions. The ECB will evaluate to what extent the banks' stress testing capabilities align with geopolitical risks, and the test results will be publicly announced in the summer of 2026.

Although this biennial exercise is not aimed at directly affecting the banks' capital requirements, the identified weaknesses are expected to be incorporated into 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 thematic stress test of 2026, banks will be asked to provide assessments of which geopolitical scenarios could seriously impact their payments.