ECB strengthens link between capital demands and stress tests

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ECB strengthens link between capital demands and stress tests

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2CPRJGT Chairperson of European Banking Authority (EBA) Andrea Enria attends a debate with the European Parliament's Economic and Monetary Affairs Committee in Brussels, Belgium September 26, 2016. REUTERS/Yves Herman | Alamy Stock Photo

The European Central Bank will set Pillar 2 Guidance (P2G) levels this year based on how lenders fare in the adverse scenario of the EU-wide stress tests.

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