(Finance) – The Central Cash Group confirms its resilience after being subjected to the Stress test 2023 conducted at European level byEuropean Banking Authority (EBA), in collaboration with the Bank of Italythe European Central Bank (ECB) and the European Systemic Risk Board (ESRB).
The results of Cassa Centrale highlight a significant resilience to the stress proposed by the Supervisory Authority. Indeed, the minimum value of the 18.52% achieved by the fully loaded CET1 ratio in the adverse scenario at the end of 2023, compared to a starting value of 21.55% (therefore with a reduction of around 303 basis points), would in any case guarantee the maintenance of a extremely significant buffer with respect to the minimum requirements established by the Supervisory Authority.
The European Stress Test 2023 does not have a minimum threshold of promotion or rejection, is instead an important source of information for the purposes of SREP (Supervisory Review and Evaluation Process). The results will in fact be useful to the competent authorities in assessing the ability of Cassa Centrale to comply with the related prudential requirements in the face of stress scenarios.
The adverse scenario has been defined by the ECB/ESRB in a way particularly severeto represent an economic context of severe stagflationcombining inflation and high interest rates with a sharp economic slowdown and rising unemployment.
The exercise was conducted considering a time horizon of three years (2023-2025) and assuming a static balance sheet at the end of December 2022therefore without taking into account future business strategies and other managerial actions, does not therefore represent a forecast of the Group’s profitability.