The European Banking Authority (EBA) has published draft methodology and templates for the 2027 EU-wide stress test, introducing significant simplifications and climate risk integration. Industry consultation is launched early to support preparedness.
The European Banking Authority (EBA) has published the draft methodology, templates, and guidance for the 2027 EU-wide stress test.
The 2027 exercise features major simplifications to enhance efficiency and risk sensitivity while maintaining result robustness and comparability. Key changes include a 55% reduction in data requirements, alignment with harmonised supervisory reporting, and the integration of climate risks into the stress test.
A total of 63 banks from the EU and Norway, including 47 from the euro area, will participate, representing 75% of the EU banking sector.
The industry consultation is being launched earlier than in previous years to support banks in their preparations. The methodology reduces data points mainly by leveraging regular supervisory reporting, simplifying stress test definitions, and removing overlapping data templates. This reduces administrative burden and improves data quality and comparability.
For the first time, climate risks—both transition and physical risks—are incorporated into the stress test through a dedicated module, although they will not impact the core results at this stage. This marks an important step towards integrating climate considerations into prudential supervision.
The early publication allows stakeholders to assess the combined impact of methodological changes and broader standards review, including the stress test reporting module. The release follows feedback from industry consultations held in May 2026, and the EBA plans to hold workshops to assist industry in preparations.
