The point that I would like to make is that – like in Europe – monetary and political integration were lengthy processes that went hand in hand, processes that were much more complicated than some of these commentators would have us believe.
In designing the test, the EBA used a static balancesheet approach, i.e., one that deliberately disregards the measures that banks would surely adopt over the 3-year period under consideration to mitigate the negative effects of the hypothetical shock.