SRB consultation on operational guidance on resolvability testing for banks

The Single Resolution Board (SRB) has opened a consultation on its operational guidance on resolvability testing for banks under the SRB's remit. It aims to ensure that European banks are regularly testing their capabilities to handle a crisis and to implement a resolution action, and promote a harmonised approach for the implementation of the multi-annual testing programme. With reference to the European Banking Authorit's 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. The consultation incorporates lessons learned from past crises and best practice. The deadline for submitting feedback is 5 May. The SRB expects to publish final guidance in Q3.

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