Coverage: weekly note · Information to 13 July 2026
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TGB Weekly Research Note · 13 July 2026
The EBA's draft package for the 2027 EU-wide stress test cuts required data points by 55% and brings in climate risk for the first time, but the climate results will sit in a dedicated module that does not affect the core results.
The desk view
The EBA published the draft package for the 2027 EU-wide stress test on 11 June 2026. It cuts required data points by 55% compared with the previous exercise, mainly by drawing on regular supervisory reporting, and brings transition and physical climate risk into the test for the first time. The climate results, however, will be assessed through a dedicated module and will not affect the core stress test results. The draft sample of 63 banks includes the EU entities of Goldman Sachs, JPMorgan, HSBC, Barclays and Citibank. Our reading is that the 2027 draft changes the cost and scope of the exercise more than its severity, which will only become visible once the adverse scenario is set.
A lighter test by design, not yet in practice
A total of 63 banks from the EU and Norway, 47 of them from the euro area, are due to take part, covering 75% of the EU banking sector. The draft for the 2025 exercise, published on 5 July 2024, had listed 68 banks, 54 from the euro area. The exercise will start from year-end 2026 figures and apply a baseline and an adverse scenario over three years, from 2027 to 2029.
The headline change is the data burden. The EBA says the consulted methodology cuts required data points by 55% compared with the previous EU-wide stress test, mainly by drawing on regular supervisory reporting. It does so by simplifying stress test definitions and eliminating data points or templates that would overlap with supervisory reporting. The cut is part of the supervisory reporting changes the EBA announced on 10 April 2026, a package that would reduce data points across EU harmonised reporting by around 50% and integrate the separate EU-wide stress test data collection into regular reporting. The EBA's efficiency report of 1 October 2025 had already flagged a strategic streamlining of the stress test to reduce the complexity and volume of data templates.
Timing is the catch. The proposed reporting changes would apply from September 2027, while the draft template guidance says that, unless otherwise stated, all templates refer to the FINREP and COREP standards in place at 31 December 2026, under reporting framework 4.2. Our reading is that the full saving depends on how the two workstreams are reconciled, so banks should not plan on a much lighter workload in this cycle until the final package is out.
Banks in EBA stress test samples, number
Source: European Banking Authority, The EBA starts dialogue with the banking industry on 2025 EU-wide stress test methodology (press release), 5 July 2024; European Banking Authority, The EBA publishes the results of its 2025 EU-wide stress test (press release), 1 August 2025; European Banking Authority, The EBA launches early consultation on simplified EU-wide stress test, with climate risk integration (press release), 11 June 2026.