Article

Europe Turns Stress Tests into a Strategic Weapon

Stress testing has evolved from a routine compliance task into a central pillar of supervisory strategy, according to the head of a stress testing team at a central bank. She highlights how modern stress tests now drive risk identification, capital planning and governance culture across regional banks. With thematic exercises, enhanced quality assurance, and future shifts toward hybrid approaches, the central bank aims to strengthen resilience and embed stress testing as a core tool for financial stability.