Consultation on revised Guidelines on stress tests of deposit guarantee schemes

• The EBA is consulting on the repeal and replacement of the existing Guidelines to further strengthen the DGS stress testing framework.
• The EBA proposes to extend current requirement to ensure that all DGSs test their abilities to perform all their functions as well as access to all their funding sources.
• The proposals aim to ensure more harmonised approaches of stress tests across the Member States and greater comparability of results.

The European Banking Authority (EBA) launched today a public consultation on its revised Guidelines on the stress tests conducted by national DGSs under the Deposit Guarantee Schemes Directive (DGSD). The proposed revision will extend the scope of the DGS stress testing, by requiring more tests that will cover additional aspects of DGS interventions. The proposed framework will also achieve greater harmonisation and comparability, to enable the EBA to carry out a robust peer review of national DGS stress tests in 2024/25.

The EBA proposes to require DGSs to stress test their ability to perform all of the interventions allowed under their legal mandates, and to access all of their funding sources. The draft revised Guidelines strengthen the cooperation between DGSs and other authorities by testing scenarios where such cooperation is necessary. In addition, the proposed new provisions require DGSs to consider testing scenarios with additional business continuity challenges, such as the pandemic, ICT failures or other similar events.

The proposed revisions are based on the findings of the first EBA peer review of the DGS stress tests and resilience of national DGSs, which the EBA published in a report in June 2020. In this report, the EBA provided early indications of areas in which the DGS stress testing framework could be improved. The EBA subsequently discussed potential amendments to the framework with schemes and competent authorities in order to develop the draft Guidelines.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 11 June 2021. All received contributions will be published at the end of the consultation, unless requested otherwise.

A public hearing will take place via conference call on Wednesday 26 May 2021 from 10:00 to 12:00 CET.

Legal basis 

These draft own-initiative Guidelines have been developed according to Articles 16(2) and 26(2) of Regulation (EU) No 1093/2010 (EBA Regulation). The Guidelines aim at enhancing the framework applicable to the stress tests that the DGSs are required to conduct in compliance with Article 4(10) of the DGSD. The Guidelines strive to strengthen the European system of national DGSs in accordance with Article 26(1) of the EBA Regulation.