Single Resolution Board publishes operational guidance on bank resolvability testing under a rolling three-year programme

The Single Resolution Board has issued Operational Guidance on Resolvability Testing for Banks, setting out practical expectations for how banks should plan, run and follow up regular tests of their ability to execute resolution actions in a crisis. The guidance follows a public consultation and is intended to support implementation of the revised European Banking Authority Guidelines on resolvability. The document describes the SRB’s multi-annual testing programme, including testing methods, internal governance, test environments, and execution and remediation of tests. The programme is designed on a bank-by-bank basis to define testing exercises over a three-year period and is subject to an annual rolling review, creating a feedback loop between resolvability assessment and testing. The SRB also published a feedback statement and notes that, in response to consultation comments, it simplified sections of the guidance and clarified elements such as testing environments.