17 December 2018
In its meeting on 12 December 2018, the Board of Supervisors of the European Banking Authority (EBA) decided to carry out its next EU-wide stress test in 2020, in line with its previous decision to aim for a biennial exercise. The EBA will start immediately to prepare the methodology for the 2020 stress test exercise. This decision has been communicated to the European Parliament, the Council and the Commission. In 2019, the EBA will perform its regular annual transparency exercise.
The decision to run the next EU-wide stress test in 2020 was driven by an acknowledgement of the ongoing progress that EU banks are making in strengthening their capital positions. Competent Authorities as well as market participants will, in the meantime, use the significant quantitative and qualitative information generated by the 2018 EU-wide stress test.
According to Article 22 of its Regulation, at least annually, the EBA shall consider whether it is appropriate to carry out EU-wide stress tests and inform the European Parliament, the Council and the Commission of the reasons behind its decision.
An EU-wide stress test assesses the resilience of financial institutions to adverse market developments, and contributes to the assessment of systemic risk in the EU financial system.