On 13 April 2026, the European Banking Authority (EBA) issued a report on recovery plans dry runs.
Recovery plan dry run exercises are typically designed and conducted by institutions to test and demonstrate whether the recovery plan – or selected components of it – can be implemented in a timely and effective manner under conditions of financial stress.
The EBA conducted an analysis of the recovery plan submissions of 16 European cross-border banking groups, whose parent institutions are located in 10 different EU countries, with a particular focus on the practices observed in relation to recovery plan dry runs. The objective of the analysis was to take stock of current practices observed across institutions, highlighting selected observed good practices. The exercise was not intended to provide prescriptive guidance, but rather to inform institutions’ future design of recovery plan dry runs and contribute to the development of useful benchmarks for their implementation.
The report concludes that practical testing of recovery plans through dry runs remains essential going forward, with the design of effective recovery plans. Given their demonstrated usefulness, it is important for institutions to maintain regular, high-quality testing of key recovery plan elements. Even in the case of well-structured and mature recovery plans, dry runs have consistently generated valuable lessons, strengthening institutions’ preparedness and their ability to respond to crises in a timely manner. Institutions are therefore encouraged to continue progressing in this direction, taking into account, where appropriate, the practices highlighted in the report.