4.7. Multi-annual testing programme

130. Resolution authorities should, having regard to the self-assessment report referred to in section 4.6, and in particular to elements requested under 124 (d-f), adopt a multi-annual re-solvability testing programme for institutions under their remit. The programme should include all the capabilities set out in these guidelines and the EBA Transferability Guidelines²⁶ .

131. It should cover a period of three years (the last two being indicative) to allow institutions to optimise their resolution planning efforts. It should be updated/confirmed by the resolution authority annually. The outcome of its annual review should be notified to the institutions with-out undue delay.

132. Resolution authorities should communicate to institutions the resolvability testing pro-gramme referred to in paragraph 130 and its annual updates or confirmations as referred to in paragraph 131, at the latest along with the summary of the resolution plan and resolvability assessment as per Article 10(7)(a) of Directive 2014/59/EU.

133. The resolution authorities should, having regard to the non-exhaustive list set out in Annex 4, set out in the resolvability testing programme (referred to in paragraph 130) the range of assessments, tests, methodologies, practices and tools that they intend to use in order to test the adequacy of the arrangements put in place by institutions to support the execution of their resolution strategy.

134. When considering the choice of testing techniques in their resolvability testing programme set out in paragraph 130, resolution authorities should follow a risk-based approach on the basis of institutions’ risk profile, size and business model (e.g. SREP categori sation²⁷ ), and over-all SREP score²⁸ and consider the following:

• a. The progress on resolvability / degree up to which resolvability capabilities set out in these guidelines are met; and
• b. The overall quality of internal resolvability assurance work evidenced in the self-assessment report.

135. In the context of cross-border resolution groups, the multi-annual resolvability testing pro-gramme should be discussed between the group level resolution authorities and the resolution authorities of the subsidiaries that are subject to these guidelines.

136. In the case of cross-border groups, the multi-annual resolvability testing programme of the resolution entities, including the tests under it, should be carried out either by the resolution authority of the resolution entity or the host resolution authorities in coordination with the resolution authority of the resolution entity – as agreed between them.

137. Resolution authorities should share, with the institution and, in the case of cross-border group, at least with the members of the resolution college, the results of any tests carried out in accordance with the resolvability testing programme referred to in paragraph 130.

²⁶ EBA/GL/2022/11.

²⁷ ‘ SREP categorisation ’ means the indicator of the institution’s systemic importance assigned based on the institution’s size and complexity and the scope of its activities. See also section 2.1.1 of the revised EBA SREP GL (EBA/GL/2022/03).

²⁸ See definition in the revised EBA SREP GL (EBA/GL/2022/03) p. 21. ‘Overall SREP score’ means the numerical indicator of the overall risk to the viability of the institution based on the overall SREP assessment.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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