With the publication of the final methodology of the EU-wide stress test 2021 and the associated templates including draft guidelines, the European Banking Authority (EBA) has defined the methodological basis for the stress test in 2021. It is now up to the participating banks to understand the methodology, analyze the data requirements and identify possible gaps before the operational implementation of the stress test in January 2021.

After the bi-yearly EBA / ECB stress test was cancelled in the wake of the COVID-19 crisis at the beginning of 2020, it has now become finally clear that the exercise will be brought to an end in 2021. This has already been stated by the EBA on its homepage and was also included in the EBA’s 2021 work program. And also those banks that are part of the ECB’s rather than the EBA’s sample of participants have by now received the information that they are once again required to participate. Hence, it’s time to take again a closer look at the upcoming exercise and to get prepared for potential amendments due to the current economic and regulatory environment.