EBA consults early on a simplified, climate-aware stress test
The European Banking Authority (EBA) has published the draft methodology, templates and guidance for its 2027 EU-wide stress test on 11 June 2026, launching the industry consultation earlier than in previous cycles to give the 63 participating banks more time to prepare.
The consulted methodology cuts required data points by 55% compared with the last exercise, largely by drawing on banks’ regular supervisory reporting rather than running separate ad-hoc collections. The 2027 test also integrates climate risk for the first time, a step towards embedding climate considerations into prudential supervision.
The EBA is achieving simplification via that 55% cut is by strengthening reuse of harmonised supervisory reporting. Stress-test data points are being pulled from the regular FINREP, COREP and ESG reporting frameworks, with overlapping templates and duplicated data points removed. Climate transition-risk information, for instance, is being included in an ESG reporting template rather than collected separately.
When supervisory data is collected through consistent, structured frameworks, a major exercise like the stress test can lean on what banks already file rather than imposing a new requirement. Less duplication, better comparability, higher data quality, with the EBA explicitly citing all three as goals. It’s a great example of the “report once, use many times” principle in action.
Read more and respond to the consultation here.
