The resilience of the banking sector has also been confirmed by the outcome of the recent EU-Wide Stress test that, together with other elements, is considered in the annual review process (i.e. SREP). This has been the result, in my opinion, of three main factors, that proved to work very well. Firstly, the government support measures.
As we know, the governments immediately intervened to dampen the adverse effects of lockdowns, by allowing banks to continue to support lending, mainly via moratoria and public guarantees. Secondly, the level of cooperation among European Authorities and Central Banks.