First, the assumed macroeconomic shock is stronger than in the previous exercise. In addition, the EBA has provided more rigorous guidance to banks on the cost of funding and static balance sheet assumptions. Second, the capital metrics is now Core Tier I capital ratio instead of the broader concept of Tier I capital used previously.
Third, a stricter peer review will be performed, with enhanced disclosure of results. Finally, Member States have committed to specific and ambitious strategies for the reinforcement of vulnerable institutions. In this context, it is important that appropriate backstops be in place for those banks which do not pass the test.