AI Summary of Article 100 Supervisory stress testing
The competent authorities are mandated to conduct annual supervisory stress tests to ensure robust evaluations of the institutions they oversee, with guidelines from the EBA to maintain common methodologies across these tests. Institutions must refrain from practices that could compromise the integrity of these assessments, as authorities are equipped with the necessary investigatory powers to enforce compliance.
Furthermore, the EBA, in collaboration with ESMA, will issue guidelines to integrate concentration risk from central counterparty exposures into stress testing methodologies by 25 June 2026. The Joint Committee of EBA, EIOPA, and ESMA is also tasked with formulating standards for assessing ESG risks, with guidance published by 10 January 2026.
Article 100 Supervisory stress testing
1. The competent authorities shall carry out as appropriate but at least annually supervisory stress tests on institutions they supervise, to facilitate the review and evaluation process under Article 97.
2. EBA shall issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to ensure that common methodologies are used by the competent authorities when conducting annual supervisory stress tests.
3. Institutions and third parties acting in a consulting capacity to institutions in the context of stress testing exercises shall refrain from activities that can impair a stress test, such as benchmarking, exchange of information among themselves, agreements on common behaviour, or optimisation of their submissions for stress tests. Without prejudice to other relevant provisions laid down in this Directive and in Regulation (EU) No 575/2013, competent authorities shall have all information gathering and investigatory powers that are necessary to detect those activities.