The European Banking Authority (EBA) today launched three consultations on draft Regulatory Technical Standards (RTS) to specify the liquidity requirements of the reserve of assets, the highly liquid financial instruments in the reserve of assets and the minimum content of the liquidity management policy and procedures of relevant issuers of tokens. Furthermore, the EBA consulted on draft Guidelines to establish the common reference parameters of the stress test scenarios to be included in their liquidity stress testing. These consultations form part of the prudential package of MiCAR deliverables and make up the third batch of MiCAR policy products. The consultations run until 8 February 2024.
In the RTS on liquidity requirements of the reserve of assets the EBA proposes minimum percentage rates of the reserve of assets with a maturity of no longer than between 1 and 5 working days. Furthermore, the EBA proposes overall techniques for liquidity management of the reserve of assets. This includes minimum creditworthiness and liquidity soundness of credit institutions taking deposits from issuers, concentration limits to issuers’ deposits with a credit institution and overcollateralisation of the assets referenced by the tokens. Moreover, the draft RTS establish the specific minimum amount of deposits with credit institutions to be held by issuers in each official currency referenced.
In the RTS on highly liquid financial instruments in the reserve of assets, the EBA specifies financial instruments that can be considered highly liquid and bearing minimal market risk, credit risk and concentration risk, where the reserve of assets may be invested in. In developing these RTS, the EBA is required to take into account the various types of assets that can be referenced by an asset-referenced token and their correlation with the highly liquid financial instruments that the issuer might invest in. This is to mitigate different market value volatilities between them. In turn, this ensures that the amount of the reserve of assets can meet, at all times, the market value of the asset referenced for any redemption request that can arise. Furthermore, in the specification of highly liquid financial instruments, the EBA needs to consider the Liquidity Coverage Ratio (LCR) framework and the Undertakings for the Collective Investment in Transferable Securities (UCITs) framework. This latter framework serves to determine the concentration limits in the investment of highly liquid financial instruments by the issuer, which is also part of the mandate to the EBA.
The EBA proposes draft RTS specifying the liquidity management policy and procedures. These ensure that the relevant issuers of tokens properly assess and monitor their liquidity needs and that their reserve assets have a resilient liquidity profile to meet any redemption of the asset-referenced tokens that can be requested at any time by their holders.
The draft EBA Guidelines on liquidity stress testing, lay out the risks identified by the EBA to be covered in the liquidity stress testing. They also pinpoint the methodology identifying the common reference parameters of the stress test scenarios to be included in the liquidity stress testing to be applied. Following application of the Guidelines, the supervisor may strengthen the liquidity requirements of the relevant issuer to cover those risks based on the outcome of the liquidity stress testing.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 8 February 2024.
These consultation papers form part of the prudential package of MiCAR products, for which the EBA will hold a hybrid public hearing on 30 January from 10:00 to 16:00 CET. The EBA invites interested stakeholders to register using this link by 23 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered to virtually attend the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The EBA has developed, in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), draft RTSs to further specify the liquidity requirements of the reserve of assets, to specify the highly liquid financial instruments in the reserve of assets and to specify the minimum content of the liquidity content of the liquidity management policy and procedures, in accordance with Articles 36(4), 38(5) and 45(7)(b) of Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR), respectively. Furthermore, the EBA has developed, in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), draft GL to establish the common reference parameters of the stress test scenarios to be included in the liquidity stress testing, following Article 45(8) of MiCAR.
MiCAR establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU). It came into force on 29 June 2023, and the provisions relating to ARTs will be applicable from 30 June 2024.
Among the activities within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and EMTs and issuing such tokens. Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant. Additionally, the EBA is mandated to develop 17 technical standards and guidelines under MiCAR to further specify the requirements for ARTs and EMTs, and an additional 3 mandates jointly with ESMA (and, in one case, also with EIOPA).
The European Banking Authority (EBA) today launched three consultations on draft Regulatory Technical Standards (RTS) to specify the liquidity requirements of the reserve of assets, the highly liquid financial instruments in the reserve of assets and the minimum content of the liquidity management policy and procedures of relevant issuers of tokens. Furthermore, the EBA consulted on draft Guidelines to establish the common reference parameters of the stress test scenarios to be included in their liquidity stress testing. These consultations form part of the prudential package of MiCAR deliverables and make up the third batch of MiCAR policy products. The consultations run until 8 February 2024.
In the RTS on liquidity requirements of the reserve of assets the EBA proposes minimum percentage rates of the reserve of assets with a maturity of no longer than between 1 and 5 working days. Furthermore, the EBA proposes overall techniques for liquidity management of the reserve of assets. This includes minimum creditworthiness and liquidity soundness of credit institutions taking deposits from issuers, concentration limits to issuers’ deposits with a credit institution and overcollateralisation of the assets referenced by the tokens. Moreover, the draft RTS establish the specific minimum amount of deposits with credit institutions to be held by issuers in each official currency referenced.
In the RTS on highly liquid financial instruments in the reserve of assets, the EBA specifies financial instruments that can be considered highly liquid and bearing minimal market risk, credit risk and concentration risk, where the reserve of assets may be invested in. In developing these RTS, the EBA is required to take into account the various types of assets that can be referenced by an asset-referenced token and their correlation with the highly liquid financial instruments that the issuer might invest in. This is to mitigate different market value volatilities between them. In turn, this ensures that the amount of the reserve of assets can meet, at all times, the market value of the asset referenced for any redemption request that can arise. Furthermore, in the specification of highly liquid financial instruments, the EBA needs to consider the Liquidity Coverage Ratio (LCR) framework and the Undertakings for the Collective Investment in Transferable Securities (UCITs) framework. This latter framework serves to determine the concentration limits in the investment of highly liquid financial instruments by the issuer, which is also part of the mandate to the EBA.
The EBA proposes draft RTS specifying the liquidity management policy and procedures. These ensure that the relevant issuers of tokens properly assess and monitor their liquidity needs and that their reserve assets have a resilient liquidity profile to meet any redemption of the asset-referenced tokens that can be requested at any time by their holders.
The draft EBA Guidelines on liquidity stress testing, lay out the risks identified by the EBA to be covered in the liquidity stress testing. They also pinpoint the methodology identifying the common reference parameters of the stress test scenarios to be included in the liquidity stress testing to be applied. Following application of the Guidelines, the supervisor may strengthen the liquidity requirements of the relevant issuer to cover those risks based on the outcome of the liquidity stress testing.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 8 February 2024.
These consultation papers form part of the prudential package of MiCAR products, for which the EBA will hold a hybrid public hearing on 30 January from 10:00 to 16:00 CET. The EBA invites interested stakeholders to register using this link by 23 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered to virtually attend the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The EBA has developed, in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), draft RTSs to further specify the liquidity requirements of the reserve of assets, to specify the highly liquid financial instruments in the reserve of assets and to specify the minimum content of the liquidity content of the liquidity management policy and procedures, in accordance with Articles 36(4), 38(5) and 45(7)(b) of Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR), respectively. Furthermore, the EBA has developed, in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), draft GL to establish the common reference parameters of the stress test scenarios to be included in the liquidity stress testing, following Article 45(8) of MiCAR.
MiCAR establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU). It came into force on 29 June 2023, and the provisions relating to ARTs will be applicable from 30 June 2024.
Among the activities within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and EMTs and issuing such tokens. Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant. Additionally, the EBA is mandated to develop 17 technical standards and guidelines under MiCAR to further specify the requirements for ARTs and EMTs, and an additional 3 mandates jointly with ESMA (and, in one case, also with EIOPA).
The European Banking Authority (EBA) today launched a public consultation on its new Guidelines on internal governance arrangements for issuers of asset referenced tokens (ARTs) under the Market in crypto-assets Regulation (MiCAR). These Guidelines specify the governance provisions that these issuers should comply with, taking into account the proportionality principle. This governance framework aims at ensuring a sound management of all risks associated with the activities of issuers of ARTs, such as operational risks, including fraud, cyber, and compliance risks. In addition, the provisions aim to adequately protect consumers and investors. The consultation runs until 22 January 2024.
In line with the proportionality principle and to take account of the specificities of issuers of ARTs, this consultation paper specifies a number of governance provisions laid down in the MiCAR, including the tasks, responsibilities of the management body as well as the organisation of issuers of ARTs. The aim of these provisions is to ensure the sound management of risks across all lines of defence to allow the supervision of issuers of ARTs.
In addition, the consultation paper provides details on how issuers of ARTs should identify sources of operational risk and minimise those risks through the development of appropriate systems, controls, and procedures. It also specifies the arrangements to be put in place when relying on third-party entities for operating the reserve of assets, for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public. Finally, the draft Guidelines provide details on the establishment of business continuity plans.
This publication together with the other consultations papers published today form a second batch of MiCAR policy products. The EBA expects to publish a third batch in November 2023.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 22 January 2024.
The EBA will hold a virtual public hearing on the consultation paper on 11 January 2024 from 09:30 to 13:00 Paris time. The EBA invites interested stakeholders to register using the link by 9 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered for the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
These draft Guidelines have been developed in cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), in accordance with Article 34(13) of Regulation (EU) 2023/1114 which requires to specify the minimum content of governance arrangements for issuers of ARTs, in particular with regard to:
the monitoring tools regarding operational risk;
the internal control mechanism for risk management, including with regard to the reliance on third-party entities for operating the reserve of assets, and for the investment of the reserve assets, the custody of the reserve assets and, where applicable, the distribution of the asset-referenced tokens to the public;
the business continuity policy and plans on ICT systems and procedures;
the audits, including the minimum documentation to be used in the audit.
When issuing these Guidelines, the EBA has taken into account the provisions on governance requirements in other Union legislative acts on financial services, including Directive 2014/65/EU.
The EBA Guidelines will apply to competent authorities across the EU, as well as to issuers of ARTs.
The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) on the minimum content of the governance arrangements on the remuneration policy under the Market in crypto-assets Regulation (MiCAR). These draft RTS specify the main governance processes regarding the adoption, implementation and maintenance of the remuneration policy and the main policy elements that should be included in the remuneration policy. The consultation runs until 22 January 2024.
To ensure that remuneration policies promote the sound and effective risk management of issuers of significant asset referenced tokens (ARTs) and of significant e-money tokens (EMT) and do not create incentives to reduce risk standards, remuneration policies should be performance-related, ensure alignment with the risks of the issuer, provide incentives to staff for long term-oriented risk-taking behavior in line with the issuer’s risk appetite and ultimately contribute to the protection of the holders of tokens.
To ensure cross sectoral consistency, these RTS set a framework similar to the remuneration framework for investment firms that aims at achieving the same regulatory objectives.
This publication together with the other consultations papers published today form a second batch of MiCAR policy products. The EBA expects to publish a third batch in November 2023.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 22 January 2024.
The EBA will hold a virtual public hearing on the consultation paper on 11 January 2024 from 09:30 to 13:00 Paris time. The EBA invites interested stakeholders to register using the link by 9 January 2024 at 16:00 CET. The dial-in details will be communicated to those who have registered for the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The draft RTS have been developed in close cooperation with the ESMA, in accordance with Article 45 Article 45(7)(a) of Regulation (EU) 2023/1114 which requires to develop draft regulatory technical standards specifying the minimum content of the governance arrangements on the remuneration policy.
Article 45(1) of Regulation (EU) 2023/1114 requires issuers of significant asset-referenced tokens to adopt, implement and maintain remuneration policies that promote sound and effective risk management of such issuers and that do not create incentives to relax risk standards.
These requirements also apply to electronic money institutions issuing e-money tokens that are significant by virtue of Article 58(1), point b, of Regulation (EU) 2023/1114 and can be expanded to e-money institutions issuing e-money tokens that are not significant if the competent authority of the home Member State requires it so, following Article 58(2) of that Regulation.
The European Banking Authority (EBA) today published a Consultation Paper on draft regulatory technical standards (RTS) on the procedure for the approval of white papers of asset-reference tokens (ARTs) issued by credit institutions. These draft RTS aim at harmonising the approval procedure across the European Union by laying down the steps and timeframes to be followed by credit institutions and by the relevant competent authority. The consultation runs until 22 January 2024.
The draft RTS propose steps and timeframes that credit institutions, competent authorities and the ECB or other central banks must follow during the procedure for the approval of a crypto-asset white paper. To ensure consistency, these RTS set out a structure that is similar to the process regulated under Article 17(1)(b) of Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR) for the notification of other information by credit institutions that aim to issue ARTs.
In particular, the elements covered in these RTS are (a) the submission of an application for approval of a white paper, (b) the acknowledgment of receipt and processing of an application by the competent authority, (c) the assessment of completeness of a white paper and request of missing information by the competent authority, (d) the information exchange between the competent authority and the ECB or other central bank, where applicable, (e) the substantive assessment and request of changes by the competent authority, and (f) the approval of the white paper.
This publication together with the other consultations papers published today form a second batch of MiCAR policy products. The EBA expects to publish a third batch in November 2023.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 22 January 2024.
The EBA will hold a virtual public hearing on the consultation paper on 11 January from 14:30 to 16:00 CEST. The EBA invites interested stakeholders to register using this link by 9 January 2024 at 16:00 CEST. The dial-in details will be communicated to those who have registered for the meeting.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The EBA has developed these draft RTS in accordance with Article 17(8) of Regulation (EU) 2023/1114 on Markets in Crypto-assets (MiCAR) and in close cooperation with the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), which mandates the Authority to specify the procedure for approval of white papers of ARTs issued by credit institutions as well as the procedure for the approval of a crypto-asset white paper for an ART issued by a credit institution.
Regulation (EU) 2023/1114 on Markets in Crypto-assets establishes a regime for the regulation and supervision of crypto-asset issuance and crypto-asset service provision in the European Union (EU). It came into force on 29 June 2023, and the provisions relating to ARTs will be applicable from 30 June 2024.
Among the activities within the scope of MiCAR are the activities of offering to the public or seeking admission to trading of ARTs and electronic money tokens (EMTs) and issuing such tokens. Supervision tasks are conferred on the EBA for ARTs and EMTs that are determined by the EBA to be significant. Additionally, the EBA is mandated to develop 17 technical standards and guidelines under MiCAR to further specify the requirements for ARTs and EMTs, and an additional 3 mandates jointly with ESMA (and, in one case, also with EIOPA).
The European Banking Authority (EBA) today launched a public consultation on draft Regulatory Technical Standards (RTS) to identify extraordinary circumstances of market disruption, permitting to waive certain requirements for the calculation of own funds requirements for market risk on the basis of internal models. The consultation runs until 3 November 2023.
The draft RTS establish a high-level framework for identifying a situation of extraordinary circumstances, setting out conditions that need to be met, and define indicators that could support the identification of extraordinary circumstances.
Under such extraordinary circumstances, institutions may continue using their internal models for a trading desk, even if that trading desk does not meet the back-testing requirements or fails the profit and loss attribution test, or they may disregard certain overshootings observed during the back-testing.
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 3 November 2023. All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place in the form of a webinar on 20 September 2023 from 15:00 to 16:00 CEST. The EBA invites interested stakeholders to register using this link by 18 September 2023, 16:00 CEST. The dial-in details will be communicated to the registered participants after the registration deadline.
These draft RTS were developed in accordance with the mandate of Article 325az(9) of Regulation (EU) No 575/2013 (Capital Requirements Regulation, CRR), which mandates the EBA to specify the extraordinary circumstances under which competent authorities may permit an institution to derogate from certain requirements regarding the calculation of own funds requirements for market risk on the basis of internal models in accordance with the revised market risk framework (FRTB).
The European Banking Authority (EBA) launched today a public consultation on amendments to its Guidelines on the specification and disclosure of systemic importance indicators. The proposed changes aim primarily at updating the annex which replicates the data template issued by the Basel Committee on Banking Supervision (BCBS) on a yearly basis. The consultation runs until 1 September 2023.
The EBA methodology for identifying global systemically important institutions (G‐SIIs) closely follows the approach of the BCBS for the identification of global systemically important banks (G‐SIBs), as they are referred to in BCBS terminology. In January 2023, the BCBS published a new data template with revisions for the 2023 identification exercise, based on end-2022 business year data. To ensure consistency between the internationally agreed standards and the EU regulatory framework, the annex of the EBA Guidelines has been amended to replicate the yearly updated Basel reporting template.
Comments to the consultation paper can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 1 September 2023. The EBA will not hold a virtual public hearing on the consultation paper considering the low impact of the suggested changes.
All contributions received will be published following the end of the consultation, unless requested otherwise.
The scope of the consultation, and of the consultation questions, is limited to the amendments and additions.
The amended Guidelines have been developed in accordance with Directive (EU) 2019/878 (CRD V), and on the basis of internationally agreed standards, such as the framework established by the Financial Stability Board (FSB), as well as the standards developed by the BCBS.
The European Banking Authority (EBA) launched today a public consultation on its draft Guidelines on the establishment and maintenance of national lists or registers of credit servicers under Directive 2021/2167 (the Credit Servicers Directive, CSRD). The consultation runs until 26 October 2023.
The proposed Guidelines on national lists or registers of credit servicers specify the types of information that the national lists or registers have to include, with a view to enhance the transparency for credit purchasers and borrowers and to bring about a level playing field across the Union.
More specifically, the proposed Guidelines set out and harmonise the content of the lists or registers, how they should be made accessible, and the deadlines for updating the lists or registers. In addition, the Guideline facilitate the ability of borrowers to access information on complaint handling procedures offered by competent authorities.
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 26 October 2023. All received contributions will be published at the end of the consultation, unless requested otherwise.
A public hearing on the draft revised Guidelines will take place via online meeting on 3 October 2023 from 13:00 to 15:00 CET. Please register for the hearing here by 29 September 2023 at 16:00 CET.
Article 9 (1) subparagraph 1 of Directive 2021/2167 on credit servicers and credit purchasers (Credit Servicers Directive – CSD, previously also referred to as the ‘NPL Directive’ or ‘Loan Servicers Directive’) requires that Member States “ensure that the competent authorities (CA) establish and maintain at least a list or, where considered more appropriate, a national register, of all credit servicers authorised to provide services within their territory, including credit servicers providing services under Article 13 of this Directive.".
In support of this requirement, the same Article mandates the EBA to “develop guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 for establishing and maintaining such lists or registers and specifying the types of information included in them in order to guarantee a level playing field across the Union and transparency for credit purchasers and for borrowers.”
The European Banking Authority (EBA) launched today a consultation on the draft Guidelines on the application of the group capital test for investment firm groups. These Guidelines aim at setting harmonised criteria to address the observed diversity in the application of the group capital test across the EU. In particular, the Guidelines identify criteria to assist Competent Authorities in their assessment of the simplicity of the group structure and the significance of the risk posed to clients and the market. The consultation runs until 25 October 2023.
The criteria for allowing the use of the application of the group capital test, as laid down in the Investment Firms Regulation (IFR), appear to be subject to different interpretations by supervisory authorities. As a result, the inconsistent application of this provision can have a significant impact on the level playing field. Accordingly, the EBA is of the view that a more harmonised application of this provision is necessary and can be achieved with these Guidelines.
These Guidelines set qualitative and quantitative criteria that Competent Authorities should consider for the purpose of assessing whether the conditions set out in the IFR for receiving the permission to use the group capital tests are met. This consultation paper includes several questions addressed to the relevant stakeholders to gather feedback around the proposed methodology and criteria.
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 25 October 2023. All contributions received will be published following the close of the consultation, unless requested otherwise.
A public hearing will take place via conference call on 5 September 2023 from 10:00 to 11:30 CET.
The EBA has developed the draft Guidelines on its own initiative, in accordance with Article 16 of its founding Regulation, which mandates the Authority to issue guidelines and recommendations addressed to competent authorities or financial institutions with a view to establishing consistent, efficient and effective supervisory practices within the ESFS, and to ensuring the common, uniform and consistent application of Union law.
The group capital test is set out in Article 8 of Regulation (EU) 2019/2033. The criteria for granting its use are set out in paragraph 8(1) and 8(4) of that regulation.
The European Banking Authority (EBA) launched today a public consultation on draft templates for collecting climate related data from EU banks. This effort is part of the one-off Fit-for-55 climate risk scenario analysis, which the EBA will carry out together with the other European Supervisory Authorities (ESAs) and with the support of the European Central Bank (ECB) and the European Systemic Risk Board (ESRB). The draft templates are accompanied by a template guidance, which includes definitions and rules for compiling the templates. The consultation runs until 11 October 2023.
The draft templates are designed to collect climate-related and financial information on credit risk, market and real estate risks. Banks are asked to report aggregated and counterparty level data as of December 2022. Collecting counterparty level data will allow to assess concentration risk of large climate exposures, as well as to capture amplification mechanisms and assess second round effects. Aggregated data will inform on the climate-related risks of the banking sector more broadly.
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 October 2023.
A public hearing will be organised in the form of a workshop on 28 September 2023. The EBA will share the dial-in details with interested stakeholders in due course.
Following this consultation, the EBA will launch a data collection at the end of November with the support of the Single Supervisory Mechanism (SSM) and other competent authorities.
70 banks will take part in this exercise (same banks as those included in the 2023 EU-wide stress test). In addition, Competent authorities might request other banks in their respective jurisdictions to participate.
The one-off Fit-for-55 climate risk scenario analysis is expected to start by the end of 2023, with publication of results envisaged by Q1 2025.
On 6 July 2021, the European Commission announced its Strategy for Financing the Transition to a Sustainable Economy. In this strategy, the Commission laid out its plans for ensuring the resilience of the financial sector to climate risks and an orderly transition towards the EU’s climate targets of reaching carbon neutrality by 2050 and reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
As part of the Strategy, the Commission announced future work for the EBA on climate stress testing including a one-off Fit-for-55 climate risk scenario analysis.
On 8 March 2023, the EBA, the ECB and the other ESAs received a letter from the Commission detailing the mandate of the one-off exercise, which aims to:
As a first step, the exercise requires each ESA, with the support of the ECB, if needed, to produce sector-specific results, based on three ad-hoc climate scenarios (i.e., one baseline and two adverse scenarios) implemented by the ESRB. These results will then be used by the ECB to produce cross-sectoral results and to model second round effects.