On 16 July 2025, the European Banking Authority (EBA) published a Handbook on simulation exercises for resolution authorities. The Handbook for the first time provides a comprehensive framework of best practices, methodologies and processes to support resolution authorities in enhancing their preparedness and operational capabilities through structured simulation exercises, harmonising the use of main concepts within the financial stability framework.
The Handbook introduces six main types of simulation exercises: brainstorms, desktop exercises, walkthroughs, fire drills, decision-making exercises and operational simulations. It also presents the concept of end-to-end simulations including templates and examples to support authorities in implementing effective and proportionate simulation exercises.