The tests, which aim to analyze the ability of banks to react to hypothetical stressed situations, are expected to be conducted in the first quarter of 2011. The results will be published in June or July.
The tests will be carried out in cooperation with the national supervisory authorities, the European Systemic Risk Board, the European Central Bank and the European Commission.
They will run parallel to stress tests undertaken by the European Insurance and Occupational Pensions Authority as part of the framework designed by the European System of Financial Supervision.
According to EBA, the methodology and approach taken in this year’s test will build on that used in the 2010 stress test.
Last year’s EU stress tests were criticized for not being stringent enough because lenders in the 27-nation region were shown by regulators to need only $4.6bn of new capital, about a 10th of the lowest analyst estimate.
The European Commission sought to include tests on bank liquidity in the wake of Ireland’s financial turmoil.
