EBA revises DGS stress testing regime in attempt to improve the framework and outcome comparability 

In 2016, EBA had published its Guidelines on stress tests on deposit guarantee schemes. By means of the Guidelines, DGSs are required to perform stress tests of their systems at least every 3 years. The results feed as input into EBA’s peer review exercise conducted on all DGSs across the EU, at least every 5 years.

The latest stress testing exercise performed by DGSs under the 2016 EBA Guidelines has taken place in 2017. The outcome was revealed in June 2020 by the EBA, through the first peer review report. Based on the reported results, which provided early indications of the need to improve the robustness of the DGS stress testing framework and comparability of the outcomes reported by the DGSs, EBA has issued a consultation paper. In this alert, you will read more on the amendments the EBA has put into focus with its latest consultation paper on the matter.