In light of recent market developments and the COVID-19 related stress of March 2020, the proposed revision of the scenarios relates to the hypothetical changes in the level of liquidity of the assets held in the portfolio of the MMF and the hypothetical macro systemic shocks affecting the economy as a whole.
This Consultation Paper focuses on the following changes to the current methodology:
  • the proposed revision of the liquidity scenario aims to better take into account the interaction between liquidity and redemption pressures, in light of the stress event experienced in March 2020; and
  • the proposed revision of the macro scenario intends to better capture the macroprudential impact of the scenario, by including assumptions on the underlying markets and other market participants.
Finally, the consultation paper also presents ESMA’s considerations on a potential climate risk scenario, seeking stakeholders’ feedback on this point.
The consultation will end on 28 April 2023.
ESMA has published a consultation paper on draft joint Guidelines on the system for the exchange of information when assessing the fitness and propriety requirements.
These Guidelines aim to increase the efficiency of the information exchange between sectoral supervisors by harmonising practices and clarifying how competent authorities should use the information system developed by the three ESAs.

The joint Guidelines apply to competent authorities under the ESAs’ remit and are divided into two main parts:
  • The first one focuses on how competent authorities should input the data and use the ESAs’ information system, including on how to search for the fit and proper assessments of persons of interest that had already been made by other competent authorities.
  • Once a competent authority has identified that a relevant assessment has been made by another competent authority, the second part of the Guidelines clarifies how they should cooperate to exchange information.
The consultation will end on 2 May 2023.
EBA has launched the 2023 EU-wide stress test and released the macroeconomic scenarios.
This year’s EU-wide stress test is designed to provide valuable input for assessing the resilience of the European banking sector in the current uncertain and changing macroeconomic environment.
The adverse scenario is based on a narrative of hypothetical heightened geopolitical tensions, with high inflation and higher interest rates having strong adverse effects on private consumption and investments, both domestically and globally.
In terms of GDP decline, the 2023 adverse scenario is the most severe used in the EU wide stress up to now.
The severe nature of the adverse scenario reflects a deliberate choice and reflects the purpose of the stress test exercise, which is to assess the resilience of the European banking system to a hypothetical severely deteriorated macro-environment.
The EBA expects to publish the results of the exercise at the end of July 2023.
EBA has published three Q&As that, jointly with three other Q&As that the EBA had published previously, clarify comprehensively the application of strong customer authentication (SCA) to digital wallets under the revised Payment Service Directive (PSD2).