On 4 November 2022, the European Banking Authority (EBA) published the final methodology, draft templates and template guidance for the 2023 EU-wide stress test along with the milestone dates for the exercise.

The objectives of the EU-wide stress test is to provide EU supervisors, banks and other market participants with a common analytical framework to consistently compare and assess the resilience of EU banks and the EU banking system to shocks, and to challenge the capital position of EU banks. The exercise is based on a common methodology, internally consistent and relevant scenarios, and a set of templates that capture starting point data and stress test results to allow a rigorous assessment of the banks in the sample.

In particular, it is designed to inform the supervisory review and evaluation process carried out by Member State competent authorities. The disclosure of granular data on a bank-by-bank level is meant to facilitate market discipline and serves as common ground on which Member State competent authorities base their assessments.

The EU-stress test is conducted in a bottom-up fashion, using consistent methodologies, scenarios and key assumptions developed jointly with other authorities.

The following dates show the milestones for the 2023 EU-wide stress test:

  • Launch of the exercise at the end of January 2023.
  • first submission of results to the EBA at the beginning of April 2023.
  • second submission to the EBA in mid-May 2023.
  • third submission to the EBA at the end of June 2023.
  • final submission to the EBA in mid-July 2023.
  • publication of results by end-July 2023.