Report · Supervisor
Report on recovery plans dry runs (EBA/REP/2026/09)
Recovery plan dry runs are useful when senior management uses them to learn, not only to comply with the supervisor.
- Organization
- European Banking Authority (EBA)
- Document date
- 13 April 2026
- Type
- Report
- Language
- English
- Scope
- European Union
- Length
- 19 pages
What it contains
The EBA’s report on recovery plan dry runs, EBA/REP/2026/09, published on 13 April 2026, is a comparative analysis of how institutions test the implementation of those plans. The sample comes from the recovery plan submissions of 16 institutions with an established EU supervisory college, in 10 countries. Its aim is to take stock of current practices, highlight selected good practices and inform the future design of dry runs and of useful benchmarks, without providing prescriptive guidance.
The EBA concludes that, although dry runs are not explicitly covered by the regulatory framework, they are a highly effective tool for making recovery plans operational and strengthening crisis preparedness. Most institutions recognise their value, but maturity varies widely: when they are carried out mainly to meet supervisory expectations, with limited senior management engagement or unclear objectives, they resemble compliance exercises and leave few lessons and follow-up actions; the most mature institutions treat them as management tools, report results in a structured way and embed them in the risk management framework.
Among good practices, effective dry runs follow a multi-year roadmap that progressively covers the components of the plan, with scope and objectives defined in advance, a clear description of the steps, communication of outcomes and lessons to senior management and to internal and external observers, and follow-up on how they are addressed in later cycles. Even for mature plans, dry runs revealed useful lessons. The report also notes that recovery and resolution testing could benefit from more synergies and integration to ensure a crisis management continuum.
Why it matters for risk management
It offers criteria for designing and assessing the dry runs of the institution’s contingency or recovery plan: defined objectives, senior management involvement, documentation and follow-up of lessons. Although it comes from European banks under the BRRD framework, the practices are applicable as a comparative reference to business continuity and to capital and liquidity recovery exercises.
Summary prepared by the Dominican Republic Risk Management Club from a reading of the original document, with the source verified on 12 October 2026. It does not replace reading the official text and is not advice.
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