EBA launches early consultation on simplified EU-wide stress test with climate risk integration

The European Banking Authority (EBA) has published the draft methodology, templates, and guidance for the 2027 EU-wide stress test. The exercise introduces significant simplifications to improve efficiency and risk sensitivity while maintaining robustness and comparability of results.

Key changes include a 55% reduction in data requirements by aligning with regular supervisory reporting, simplifying stress test definitions, and removing overlapping data points. These measures reduce administrative burden and enhance data quality and comparability.

For the first time, climate risks—both transition and physical—are incorporated into the stress test through a dedicated module. These risks will not affect the core results but represent an important step toward embedding climate considerations into prudential supervision.

The early publication aims to enable stakeholders to assess the combined impact of methodological changes and broader standards review. The consultation follows feedback from industry during May 2026 and includes plans for workshops to support industry preparations.

A total of 63 banks from the EU and Norway, including 47 from the euro area, will participate, covering 75% of the EU banking sector.