17 December 2021
On 8 December 2021, the Board of Supervisors of the European Banking Authority (EBA) decided to carry out its next EU-wide stress test in 2023. This is in line with the decision to aim for a biennial exercise. This decision has been communicated to the European Parliament, the Council, and the Commission. In 2022, the EBA will perform its regular annual transparency exercise.
The decision to run the next EU-wide stress test in 2023 reflects the ongoing progress that EU banks are making in strengthening their capital positions and the work to be done for the preparation of the next stress test exercise. Competent Authorities as well as market participants will, in the meantime, be able to use the significant quantitative and qualitative information generated by the 2021 EU-wide stress test.
The EU-wide stress test for banks is used to assess their resilience to adverse economic and market developments and contributes to the assessment of systemic risk in the EU financial system.
According to Article 22 of its Regulation the EBA shall consider, at least annually, if it is appropriate to carry out EU-wide stress tests. The European Parliament, the Council and the Commission should be informed about the reasons behind the decision.