EBA is consulting on draft guidelines on stress tests of deposit guarantee schemes (DGSs) under the recast Deposit Guarantee Schemes Directive (DGSD). The guidelines will require DGSs to establish a programme of tests over a period of two to five years, covering specific scenarios and indicators. DGSs will test the various possible uses of funds provided for under the DGSD, including payout, contribution to resolution funding and, where allowed under national law in accordance with the DGSD, contribution to failure prevention. EBA also specified the main testing areas, which range from data access to operational resources, to communication and payments. While the guidelines apply without any time limit, DGSs should run a number of priority tests and report the results to their own authorities and EBA by 3 July 2019. This will in turn enable EBA to deliver its first peer review in 2020. Consultation closes on 8 February 2016. (Source:EBA Consults on DGS Stress Tests)