The Guidelines launched for public consultation today will require Deposit Guarantee Schemes (DGSs) across the EU to establish a programme of tests over a period of two to five years, covering specific scenarios and indicators. The broad types of intervention scenarios (simulations of failure) to be tested are provided, as well as the key areas to be assessed. DGSs will test the various possible uses of funds provided for under the DGSD. These include payout, contribution to resolution funding and, where allowed under national law in accordance with the DGSD, contribution to failure prevention. The European Banking Authority (EBA) also specified the main testing areas, which range from data access to operational resources, to communication and payments; and for each area a series of indicators will have to be measured.
The EBA based this work on existing practices, organisational and cross-sector principles, so as to ensure that stress tests performed by DGSs address relevant points. The proposal puts in place a framework for stress tests that will produce objective, comprehensive, and comparable results across the EU.
While the guidelines apply without any time limit, DGSs will be requested to run a number of priority tests and to report the results to their own authorities and the EBA by 3 July 2019. This will in turn enable the EBA to deliver its first peer review in 2020. The templates annexed to these Guidelines will facilitate the collection of data in a consistent and comparable way.
Comments on this consultation can be sent to the EBA by 8 February 2016. A public hearing will then take place at the EBA premises on 19 January 2016 from 14.00 to 16.00 UK time.
Press release
Consultation paper
Annex - Template
© EBA
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