The 2020 exercise will assess EU banks' resilience to an adverse economic shock and inform the 2020 Supervisory Review and Evaluation Process (SREP). The methodology covers all risk areas and builds on the methodology prepared for the 2018 exercise, while improving some aspects based on the lessons learnt.
The preliminary list of institutions participating in the exercise as well as the timeline are also released.
The 2020 EU-wide stress test will be carried out at the highest level of consolidation on a sample of 50 banks, of which 38 from the Euro Area, covering broadly 70% of the banking sector in the euro area, the non-Eurozone Member States and Norway.
No single capital threshold has been set for this exercise as banks will be assessed against relevant supervisory capital ratios under a static balance sheet and the results will be an input to the SREP, under which decisions are made on appropriate capital resources and forward looking capital plans.
The final methodology will be published by the end of the year. The EU-wide stress test will be launched in January 2020 and the results published by the end of July. [...]
UK banks have preliminarily been excluded from the sample under the assumption that, barring any transitional arrangements in the withdrawal agreement, the UK will leave the EU by 31 October 2019 and, therefore, UK banks will not participate in the 2020 EU-wide stress test. Under the same assumption, HSBC France has been included in the sample. The preliminary list of institutions that are included in the sample can be seen in the Annex I of the Methodological note.
Press release
2020 EU-wide stress test - draft methodological note
2020 EU-wide stress test - draft template guidance
2020 EU-wide stress test - draft templates
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