The watchdog said it will start preparing for the next exercise in 2016.
The EBA plans to carry out a transparency exercise in line with the one conducted in 2013 instead of a stress test.
According to EBA, the exercise will provide detailed data pertaining to balance sheets and portfolios of EU banks and will be run based on banking data for the fourth quarter of 2015.
The authority communicated the decision to the European Parliament, the council as well as the commission.
An acknowledgement of the progress made by the EU-banks in bolstering their capital positions in response to the asset quality reviews and EU-wide stress test in 2014, were the driving forces behind EBA’s decision.
The efforts were said to be preceded by years of capital raising that was stimulated by the authority’s 2011/12 recapitalisation exercise.
This led EU banks to strengthen their capital positions by over €200bn and to start the 2014 exercise with a common equity tier CET1 ratio of 11.5%.
At present, the largest EU banks CET1 ratio stands at over 12% against 9.2% in December 2011.
Activities of the regulatory agency of the European Union EBA include conducting stress tests on European banks to increase transparency in the European financial system and identifying weaknesses in banks’ capital structures.
