SRB publishes operational guidance on resolvability testing for banks to enhance crisis readiness

• Guidance, published after public consultation, provides details on the multi-annual testing programme

• Regular testing of banks’ ability to deal with a crisis situation contributes to ensuring resolvability

The SRB publishes today its Operational Guidance on Resolvability Testing for Banks, following public consultation. This document is a practical tool for banks to implement the revised EBA Guidelines on resolvability, including expectations on the multi-annual testing programme, testing methods, internal governance, test environments, as well as performing and following up on tests.

SRB Chair Dominique Laboureix said: “Resolvability testing increases banks' abilities to execute resolution strategies. Through the multi-year testing programme, the SRB, National Resolution Authorities and banks are advancing their readiness to tackle any crisis scenario head-on.”

Testing is a key component of the SRM Vision 2028 shift towards crisis readiness aiming to ensure that resolution strategies are operational and implementable. This testing framework, combined with the new harmonised approach to banks’ resolvability self-assessment, strengthens the SRB’s overall approach to resolvability assessment. 

The multi-annual programme will define the testing exercises banks will conduct over a three-year period, with an annual review on a rolling basis to incorporate developments from the previous year. This bank-by-bank programme is designed to create a natural feedback loop between resolvability assessment and testing. 

The final guidance document has benefited from an extensive consultation process. Following the comments received, the text of the guidance was simplified in several sections and clarification was provided on aspects such as testing environments.