European Banking Authority up and running and preparing new EU-wide stress test

European Banking Authority

The European Banking Authority (EBA) officially came into being on 1 January 2011, taking over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS). The EBA convened on 12 January 2011 for its first Board of Supervisors meeting.

The EBA Board agreed on a strategic work plan for an EU-wide stress test to take place in the first half of 2011, and to publish results in mid-2011. The 2011 stress test will be carried out in cooperation with the national supervisory authorities, the European Systemic Risk Board (ESRB), the European Central Bank (ECB) and the European Commission, and will cover a broadly similar group of banks as last year.

The methodology and approach taken will build on that used in the 2010 stress test. The objective of the stress test is to assess the resilience of the EU banking system to hypothetical stress events under certain restrictive conditions.

This stress test is a part of the framework for the assessment of the resilience of the financial sector being built by the European System of Financial Supervision (ESFS) and will be carried out in parallel with stress tests undertaken by the European Insurance and Occupational Pensions Authority (EIOPA).

Date

January 13, 2011