Adverse stress test scenarios for EU-wide stress test of banks and insurance firms

The EU regulations establishing the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) require them, in cooperation with the European Systemic Risk Board (ESRB), to initiate and coordinate EU-wide assessments of the resilience of financial institutions to adverse market developments, including through stress testing. As part of this cooperation, the ESRB has designed scenarios of adverse economic and financial market developments to assess the resilience of financial institutions.

The ESRB has today published the adverse scenarios for the EU-wide stress tests for banks and insurance to be carried out by the EBA and the EIOPA in 2014. These scenarios, which have been approved by the General Board of the ESRB, highlight adverse conditions that are specific and relevant to each sector.

The ESRB has submitted the following documents to the EBA:

• Letter from the ESRB Chair to the Chairman of the EBA
• Adverse scenario for the 2014 EBA stress test

And the following to EIOPA:

• Letter from the ESRB Chair to the Chairman of EIOPA
• Two market adverse scenarios for the core module in the 2014 EIOPA stress test
• Qualitative questionnaire on one of the market adverse scenarios to complement the 2014 EIOPA stress test

This information has also been published by the EBA and EIOPA as part of their communication on the 2014 EU-wide stress tests.

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