The SRB is consulting the banking industry and relevant stakeholders on its Operational Guidance on Resolvability Testing for Banks.
Now that the phase-in period of the Expectations for Banks has come to an end, the SRM Vision 2028 outlines the strategy for the next phase of the Single Resolution Mechanism. It focuses on crisis management and readiness, making all resolution tools operational, and comprehensive testing to ensure the effective resolvability of banks.
A dedicated consultation on resolvability assessment was concluded in February this year. The enhanced methodology, together with the new banks’ resolvability self-assessment template, will help banks to report their resolvability in a harmonised manner and should facilitate SRB benchmarking work. Moving forward, it will also inform multi-annual testing programmes for the banks, in line with the EBA Guidelines on improving resolvability[1]. The bank-led tests will also be complemented by deep dives and on-site inspections carried out by the SRB and the National Resolution Authorities (NRAs).
Against this background, the Operational Guidance on Resolvability Testing for Banks seeks to promote a harmonised approach for the implementation of the multi-annual testing programme. With reference to the EBA Guidelines on improving resolvability, it defines testing areas and sub-areas, testing methods, as well as expectations for testing governance, design, preparation and reporting.
The multi-annual testing programme will define the testing exercises banks will conduct over a three-year period, with an annual review to incorporate developments from the previous year. A natural feedback loop exists between resolvability assessment and testing: resolvability assessment outcomes will shape testing priorities, while testing results will validate operational effectiveness and inform future resolvability assessments.
Following the review of these consultation contributions, the SRB will further refine the guidance, addressing any key concerns raised. The final Operational Guidance on Resolvability Testing for Banks under the SRB’s remit will be published in Q3 2025, along with a summary of industry and other stakeholder feedback, explaining how that feedback was taken into account.
You can take part in the consultation by filling in the online questionnaire.
[1] Guidelines EBA/GL/2023/05 amending Guidelines EBA/GL/2022/01 on improving resolvability for institutions and resolution authorities under articles 15 and 16 of Directive 2014/59/EU (Resolvability Guidelines) to introduce a new section on resolvability testing.