EBA published its final resolvability testing Guidelines

EBA published the Guidelines 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.
These guidelines aim to establish a framework to ensure that resolvability capabilities developed by banks comply with the guidelines and are effectively maintained. The guidelines require institutions to submit a resolvability self-assessment at least every two years, outlining how they meet the resolvability and transferability capabilities and how they have gained assurance of their adequacy. The first self-assessment is expected by the end of 2024.
Based on the self-assessment, authorities are required to develop multi-annual testing programs to gain assurance of firms‘ resolvability over a three-year period. The first testing program is expected by the end of 2025. The guidelines also mandate the most complex banks to develop a master playbook to ensure a holistic approach to resolution planning. The first master playbook should be submitted by the end of 2025.
These guidelines aim to increase firms‘ involvement in the resolvability assessment process and promote their ownership of resolvability. They complement existing guidelines on improving banks‘ resolvability and transferability. EBA has initiated efforts to harmonize the approach to resolvability at the EU level and ensure the implementation of international standards. The guidelines will be translated into all EU official languages, and a consolidated version of the resolvability guidelines including the new chapter on testing will be made available.