The European Banking Authority (EBA) launched a public consultation on the guidelines on stress tests of deposit guarantee schemes. The guidelines will replace the EBA’s previous guidelines and extend the scope of the testing obligation for deposit guarantee schemes. The guidelines require deposit guarantee schemes to test their ability to perform their tasks and access all their available funding sources. The EBA aims to harmonise stress testing practices across the EU and thus also facilitate improved comparability of the tests.
As part of the consultation, the EBA arranged a public hearing that could be attended remotely with an internet connection. The hearing was arranged on 26 May 2021. The consultation ended on 11 June 2021.
The guidelines have been developed based on the observations identified in the peer review prepared by the EBA of stress tests of deposit guarantee schemes, published in June 2020. The Financial Stability Authority (FFSA) has been closely involved in the preparation of both the peer review and the guidelines.
Based on the guidelines, the FFSA will prepare a new, multi-year test plan for deposit guarantees and perform tests in accordance with the guidelines. Testing plays an important role in the FFSA’s development of the deposit guarantee scheme, ensuring efficient deposit guarantees in Finland as well as in cross-border payment of deposit guarantee compensation. The guidelines will also have an impact on deposit banks, as some of the tests specified by the guidelines concern the banks’ ability to produce and submit the required information to the FFSA for the payment of deposit guarantee compensation.
Link to EBA’s consultation: Consultation on revised Guidelines on stress tests of deposit guarantee schemes
Further information: Fanni Teinilä, Legal Counsel (firstname.lastname(at)rvv.fi)
