The EBA starts dialogue with the banking industry on 2025 EU-Wide stress test methodology
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The EBA starts dialogue with the banking industry on 2025 EU-Wide stress test methodology
The European Banking Authority (EBA) has published for informal consultation its draft methodology, templates, and guidance for the 2025 EU-wide stress test
This step marks the beginning of the dialogue with the banking industry and builds upon the methodology used in the 2023 exercise, with improvements reflecting new insights and regulatory changes. Some important changes are introduced, notably
- Integration of the upcoming Capital Requirements Regulation (CRR3), set to be implemented on January 1, 2025.
- Considers the Commission’s announcement to postpone the application date of the fundamental review of the trading book (FRTB)
- Centralisation of net interest income (NII) projections and advancements in the market risk methodology to increase risk sensitivity
68 banks from the EU and Norway, including 54 from the euro area, will participate in the exercise, thus covering 75% of the EU banking sector. The expanded geographical reach and incorporation of proportionality features aim to boost efficiency while ensuring the relevance and transparency of the results