Regulation 2020/2/EU

Summary
Regulation 2020/2/EU increases the strength of the stress tests that are undertaken by the European Central Bank and European Commission on these designated banks will be made significantly more strenuous in order to better prepare for potential crisis. These tests which are conducted by the European Banking Authority, in cooperation with the European Central Bank and European Commission, will be increased in quantity and scope. Capital exercises will also take place every single year, banks failing them will be required to immediately act to rectify them in order to ensure they meet the next one.

This along with Regulation 2020/1/EU and Directive 2020/1/EU forms part the European Financial Supervision & Capitalisation Regulatory Program. These Regulations were drafted by Enzo Moavero Milanesi, European Commissioner for the Euro, in conjunction with Nadia Calviño, European Commissioner for Financial Services and the Capital Markets Union.