The results of the survey, based on a reverse stress test—where a predetermined outcome is set and each bank defines scenarios in which these outcomes could materialize—will assess how geopolitical risks might affect solvency.
In a statement on its website, the regulator notes that the test will supplement the stress test conducted by the European Banking Authority (EBA) and will involve 110 banks in the eurozone, with conclusions expected to be published in the summer of 2026.
Banks will consider geopolitical situations that could potentially decrease their Common Equity Tier 1 (CET1) capital ratio by at least 300 basis points.
This ratio is the primary measure of strength for the ECB.
In addition to identifying these risks, banks will also have to record how geopolitical risks could impact their liquidity and financing conditions.
The aggregated CET1 ratio of eurozone banks stood at 16.05% at the end of the first quarter, compared to 15.95% in the previous quarter and 15.74% in the first quarter of 2024.
In Portugal, according to data from the Banco de Portugal (BdP), this ratio was 17.89% in the first quarter, down from 18.00% in the fourth quarter of 2024 and up from 17.13% a year earlier.
