The European Banking Authority (EBA) has published a review of the stress tests performed by seven European deposit guarantee schemes (DGS) in 2021–2024. The stress tests conducted by the Financial Stability Authority (FFSA) scored highest in all reviewed areas.
The purpose of the stress tests is to determine the operational capabilities of the organisation responsible for deposit guarantee to perform its statutory deposit guarantee tasks. Based on the review, the tests performed by the FFSA fully met the requirements of the EBA guidelines on stress tests and met all the review criteria without significant shortcomings.
The EBA review was implemented by comparing five categories:
- How have the stress test plans been designed and executed?
- How did the DGS perform in the mandatory stress tests under the EBA guidelines on stress tests?
- Is cooperation between authorities effective?
- Have the scenarios used in the stress tests been sufficiently serious and complex?
- How well has the DGS identified the necessary future development measures and have any development measures been taken based on these observations?
In its review, the EBA also highlights best practices for maintaining and developing the operational capabilities related to deposit guarantee by issuing recommendations. The EBA will monitor the implementation of the recommendations highlighted in the report and publish a report on how DGSs have addressed these recommendations no later than two years from now. The EBA review was implemented as a peer review, in which the audit team consisted of specialists of deposit guarantee and supervisory authorities from different countries as well as experts from the EBA secretariat.
The EBA review focused on FFSA’s stress tests and simulations in 2021–2024. In addition to Finland, stress tests performed by DGSs in Belgium, Spain, Italy, Austria, Latvia and Poland were selected for the EBA review. In Finland, specialists of the Financial Supervisory Authority, the Bank of Finland, the Ministry of Finance and the Ministry of Social Affairs and Health also participated in the stress tests organised by the FFSA either as observers, participants or in the role of a test depositor.
Further information:
Deposit Guarantee Expert Anna Kanninen ([email protected])
More information in EBA’s press release (7 April 2025) with a link to the entire report.
Read more about the deposit guarantee stress tests (FFSA's press release 10 June 2024).
Read more about the EBA's guidelines for deposit guarantee stress tests.
Read more about the Financial Stability Authority's current topics on our website.
