The Czech National Bank published supervisory stress test results showing that domestic banks have sufficient capital to withstand a severe deterioration in economic conditions. Strong initial capitalization would keep the tested banks’ capital adequacy well above the regulatory minimum under the adverse scenario. The consolidated capital ratio for the tested banks stood at 20.7% at the end of 2025 and would decline to 18.4% under a scenario involving a sharp contraction in Czech and foreign economic activity from 2026 through 2028. The exercise covered 13 domestic banks representing about 92% of Czech banking sector assets and assessed credit, market and operational risks over a three-year horizon using European Banking Authority methodology adapted to the Czech market.
Czech National Bank2026-08-04
Czech National Bank stress tests find banks resilient under severe downturn, with capital ratio at 18.4%
Czech National Bank stress tests found that domestic banks could withstand a severe economic downturn while remaining well above minimum capital requirements. The tested banks’ consolidated capital ratio would fall from 20.7% at the end of 2025 to 18.4% under the adverse scenario.