EBA reveals findings and best practices on Recovery Plans dry runs

The European Banking Authority (EBA) has published its report on banks’ dry-run testing of recovery plans, highlighting key gaps and good practices across the sector.

The analysis confirms that dry runs are a critical tool for strengthening operational preparedness and improving banks’ ability to respond to stress situations in a timely and credible manner.

While most institutions recognise their value and use lessons learned to enhance recovery planning, the EBA identifies significant differences in approach and maturity across banks.

A key finding is that dry runs conducted merely as a compliance exercise tend to deliver limited value, with weak insights and follow-up actions. In contrast, banks that embed dry runs into their broader risk management frameworks achieve stronger outcomes, including improved internal coordination, feasibility and credibility of recovery plans.

The report also stresses the importance of regular, high-quality testing and calls for stronger integration between recovery and resolution planning to support a more effective crisis management framework.

Overall, the EBA positions dry-run testing as a key element of supervisory priorities for 2026, aiming to enhance resilience across the EU banking sector.