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EBA Finds Gaps In Bank Recovery Dry Run Practices

Overview Of The European Banking Authority Findings

The European Banking Authority (EBA) published a report examining how banks conduct dry runs to test recovery plans. The analysis focuses on how institutions prepare for stress scenarios and assess their ability to implement recovery measures. Dry runs serve as practical tests of operational readiness under adverse conditions.

Varied Approaches And Institutional Maturity

Findings show clear differences in how banks design and execute these exercises. Approaches vary in scope, methodology, and depth of implementation. Institutions that treat dry runs mainly as compliance exercises tend to gain limited practical value. In such cases, testing does not translate into improvements in recovery planning.

Integrating Dry Runs Into Broader Risk Management

More advanced institutions integrate dry runs into broader risk management processes. These exercises are used to test internal coordination, decision-making, and operational response. Such integration improves the feasibility of recovery plans and supports faster execution during stress events.

Regulatory Evolution And Future Implications

The EBA highlights the need for consistent and high-quality testing of recovery frameworks. Updates to testing approaches are required as risk conditions evolve. Closer alignment between recovery and resolution planning is also identified as an area for further development.

Moving Forward With Strategic Preparedness

According to EBA, the benchmarking exercise is intended to guide improvements rather than impose requirements. The report provides reference points for strengthening testing practices across institutions. Additional guidance, including the EBA handbook on simulation exercises, supports further development of recovery and resolution planning.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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