The EBA streamlines the 2027 EU-wide stress test with more than 55% reduction in requested data

The European Banking Authority (EBA) today released the final methodology, draft templates, and template guidance for its 2027 EU-wide stress test, together with the key milestones for the exercise. Following extensive engagement with industry participants, the EBA has significantly streamlined the exercise, reducing the number of required data points by 55% through the simplification of reporting templates and closer alignment with supervisory reporting. These changes will reduce operational burden and improve efficiency while preserving the robustness, risk-sensitivity and comparability of stress test results. The 2027 exercise will also include, for the first time, a dedicated module assessing climate-related risks. The 2027 EU-wide stress test will formally start in January 2027, following the release of the macroeconomic and climate scenarios, with the results scheduled for publication by the end of July 2027.

The 2027 EU-wide stress test will continue to follow a constrained bottom-up approach, complemented by top-down elements, and based on a static balance sheet assumption. It will assess the impact of adverse shocks on banks’ solvency across key risk areas and income streams under both baseline and adverse scenarios. The methodology also defines the sample of participating banks for the 2027 EU-wide stress test, although the sample may be subject to changes ahead of the launch of the exercise.

Compared with the previous exercise, the number of required data points has been reduced by 55%, mainly by streamlining the templates and relying more closely on regular supervisory reporting concepts, particularly in credit risk. These improvements are expected to reduce reporting burden and improve data quality and consistency.

For the first time, physical and transition climate risks will be assessed through a dedicated module, without affecting the core stress test results.

The draft stress test templates and guidance published today may be subject to minor technical adjustments before the formal launch of the exercise.

Key Milestones for the 2027 EU-wide Stress Test

• Launch of the exercise: end of January 2027
• First submission of results to the EBA: end of April 2027
• Second submission to the EBA: end of May 2027
• Final submission to the EBA: early July 2027
• Publication of results: end of July 2027

Note to the editors

• The simplification of the 2027 stress test templates and methodology is part of the forthcoming supervisory reporting changes announced on 10 April 2026.
• The 2027 EU-wide stress test methodological package marks another important milestone under the EBA’s communication campaign “Simplifying to strengthen: building a more efficient EU prudential and supervisory framework”. This initiative is part of the EBA’s broader priority to simplify and enhance the efficiency of the regulatory and supervisory framework, in line with the work of its Task Force on Efficiency (TFE) and the EBA’s Report on the efficiency of the regulatory and supervisory framework, published on 1 October 2025. The proposed changes aim to reduce unnecessary operational burden while preserving a robust, consistent and risk-sensitive framework across the EU banking sector.
• The aim of the EU-wide stress test is to assess the resilience of EU banks to a common set of adverse economic developments, identifying potential risks (including environmental ones), informing supervisory decisions, and increasing market discipline.
• The EBA conducts the stress test in a bottom-up fashion with some top-down elements, using consistent methodologies, scenarios, and key assumptions developed jointly with other authorities.
• The exercise is coordinated by the EBA in cooperation with the European Central Bank, the European Systemic Risk Board, and the Competent Authorities from all relevant national jurisdictions.
• To give banks sufficient time to prepare, the EBA published the methodology and templates (including scenario templates) well ahead of the formal launch by end of January 2027, when the relevant macroeconomic scenarios will be released.