General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 07, 2017

EBA published the 2018 EU-wide stress test draft methodology and templates for discussion with the industry, along with the list of institutions participating in the exercise. The final methodology will be published as the exercise is launched, at the beginning of 2018, and the results are expected to be published in mid-year 2018.

The methodology covers all relevant risk areas and will also incorporate IFRS 9 accounting standards for the first time. For banks starting to report under IFRS 9 in 2018, the 2018 EU-wide stress test takes into account the impact of the implementation of IFRS 9 on January 01, 2018—both in terms of starting point and projections. The draft methodology is the starting point for an informal discussion with banks to receive their input, which will be taken into account when finalizing the documents.

 

The stress test exercise will cover 70% of the banking sector in the EU and will evaluate the ability of banks in the EU to meet relevant supervisory capital ratios during an adverse economic shock. The exercise is based on a common methodology and a set of templates that capture starting point data and stress test results. The 2018 EU-wide stress test will be conducted at the highest level of consolidation on a sample of 49 EU banks, 35 of which fall under the jurisdiction of the Single Supervisory Mechanism (SSM). The banks will be assessed against relevant supervisory capital ratios under a static balance sheet; therefore, no single capital threshold is defined for this exercise. The results will inform the 2018 Supervisory Review and Evaluation Process (SREP), challenging capital plans of banks and leading to relevant supervisory outcomes.

 

Related Links

Draft Methodology (PDF)

Draft Templates (XLS)

EU-Wide Stress Testing, 2018

Keywords: Europe, EBA, Banking, Stress Testing, IFRS 9, SSM, SREP

Related Insights
News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News
News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News
News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News
News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News
News

FED Issues Correction in Historical Dataset in its 2019 Stress Tests

FED identified an error in the historical dataset used in its 2019 stress tests and issued a correction.

February 13, 2019 WebPage Regulatory News
News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News
News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News
News

BCBS Updates Instructions for Basel III Monitoring Exercise

BCBS updated instructions for Basel III monitoring for the collection of December 2018 data from the participating banks.

February 12, 2019 WebPage Regulatory News
News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2603