The methodology and templates cover all relevant risk areas and incorporate the feedback received during the discussion with the industry in the summer of 2019. The stress test exercise will be formally launched in January 2020 and the results published by 31 July 2020.
The Board of Supervisors of the European Banking Authority (EBA) agreed on the publication of the 2020 EU-wide stress test package, which includes the methodology, templates and template guidance. Similar to the 2018 exercise, the 2020 EU-wide stress test is a bottom-up exercise with constraints, including a static balance sheet assumption.
The exercise is primarily focused on the assessment of the impact of risk drivers on the solvency of banks. Banks are required to stress a common set of risks (credit risk – including securitisations – market risk and counterparty credit risk, and operational risk – including conduct risk). In addition, banks are requested to project the impact of the scenarios on net interest income and to stress P&L and capital items not covered by other risk types.
A draft version of the stress test templates is also published along with a template guidance that contains instructions on how to populate them. The draft version of the templates can still be subject to minor technical adjustments before its final publication.
Key milestone dates of the 2020 EU-wide stress test exercise
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Launch of the exercise at the end of January 2020;
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First submission of results to the EBA at the beginning of April 2020;
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Second submission to the EBA in mid-May 2020;
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Final submission to the EBA in mid-July 2020;
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Publication of results by end-July 2020
Full press release on EBA
Methodological note on EBA
Template guidance on EBA
Templates on EBA
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