ECB adopts decision on notification criteria for supervisory stress tests

The European Central Bank (ECB) has adopted Decision (EU) 2025/94, establishing the criteria governing the notification of supervisory decisions in the context of supervisory stress tests. The decision, which entered into force immediately upon its publication in the Official Journal of the European Union, aims to enhance transparency and procedural clarity in the ECB’s supervisory framework.

Scope and purpose of the decision

Pursuant to Article 100 of Directive 2013/36/EU (CRD IV), competent authorities are required to conduct supervisory stress tests on supervised credit institutions at least annually. These stress tests serve as a crucial tool in the Supervisory Review and Evaluation Process (SREP) under Article 97 of CRD IV, ensuring the financial resilience of institutions under various economic scenarios.

As the authority exclusively responsible for the prudential supervision of significant credit institutions within the Single Supervisory Mechanism (SSM), the ECB designs and implements different types of supervisory stress tests. These include:

• Comprehensive solvency stress tests, which assess the capital adequacy of institutions under adverse conditions.
• Targeted thematic stress tests, focusing on specific risk areas.

In preparation for each stress test, the ECB must determine the nature, format, and submission deadlines for the data required from the participating institutions. Decision (EU) 2025/94 provides a structured framework for the notification of such supervisory decisions, ensuring that institutions receive timely and clear instructions.

Notification mechanism: ASTRA IT Platform

Under the decision, the ECB’s supervisory decisions related to stress tests will be formally notified to significant supervised entities via ASTRA, the ECB’s dedicated IT platform for document-based communication. Specifically:

• Institutions will receive notification once a decision is uploaded to ASTRA.
• The decision will be deemed legally notified on the date of upload.
• An automated email will be sent to the institution’s registered contact address, informing it of the uploaded decision.

This approach ensures a secure, efficient, and auditable method of communication, aligning with the ECB’s broader digitalization strategy in supervisory processes.

Urgency and immediate effect

The decision underscores the urgent need for implementation, given the ECB’s plans to conduct a supervisory stress test in early 2025. To facilitate the smooth execution of this stress test, it was deemed necessary for the decision to take effect without delay.

Legal basis

The decision is adopted pursuant to:

• Council Regulation (EU) No 1024/2013, which grants the ECB supervisory responsibilities over significant credit institutions.
• Regulation (EU) No 468/2014 (SSM Framework Regulation), which governs cooperation between the ECB and national competent authorities.
• Article 35(1) and (10) of Regulation (EU) No 468/2014, empowering the ECB to determine the criteria for electronic notification of its supervisory decisions.

Conclusion

Decision (EU) 2025/94 represents an important step in ensuring a transparent and efficient notification process for supervisory stress tests. By mandating the use of ASTRA as the sole platform for notifications, the ECB enhances procedural consistency while reinforcing its commitment to robust and technology-driven supervisory practices.

For more information or any inquiries, please feel free to write to the members of the Harris Kyriakides Banking & Finance team or contact us at [email protected].