EBA peer review on the performance of stress tests by DGSs
On 7 April 2025, the European Banking Authority (EBA) published a peer review report on the performance of stress tests by EU deposit guarantee schemes (DGSs).
Background
The peer review assessed the performance of stress tests by seven EU DGSs by examining how stress tests are performed against Article 4 of the Deposit Guarantee Schemes Directive and the revised guidelines on stress tests of deposit guarantee schemes under Directive 2014/49/EU repealing and replacing guidelines EBA/GL/2016/04.
Findings
Among other things the peer review found that:
- All of the seven DGSs have effectively developed their stress testing programmes in line with the methodology outlined in the revised guidelines, with only minor shortcomings.
- Five DGSs could fully or largely demonstrate that they have performed all the mandatory core stress tests, using realistic assumptions and conducting objective evaluations.
- Five DGSs could fully or largely demonstrate that they have identified areas for improvement in their systems and have taken or have planned actions to address these areas. Two DGSs could only demonstrate this partially.
Next steps
The report outlines a number of follow-up measures addressed to all the seven EU DGSs in the areas of: the prompt development of stress tests; the performance of stress test; cooperation; severity and complexity of stress tests; and, the identification of areas of improvement.
The EBA will conduct a follow-up peer review of the implementation of the measures included in the report in two years.
