EBA has published the draft methodology for its 2016 EU-wide stress test. The stress test will be launched in February 2016 and will cover approximately 70% of the EU banking sector. No single capital threshold is defined for the exercise as banks will be assessed against relevant supervisory capital ratios under a static balance sheet. There are 53 banks participating in the exercise, 39 of which fall under the jurisdiction of the Single Supervisory Mechanism (SSM). EBA will coordinate the exercise in cooperation with national authorities and ECB. For significant banks not covered by the exercise, ECB will carry out its own stress test in parallel which will give consideration to the lower size and complexity of these institutions. (Source: EBA Announces 2016 Stress Test)