Climate Stress Test for Banks

The European Union conducted a"Fit-for-55" climate stress test for banks. The aim was to gather climate-related and financial information on credit, market, and real estate risks. Institutions were required to report both aggregated data and counterparty-level data.

Challenge

A regional bank in Germany faced the task of delivering the required data on time and with high quality. Especially in the real estate sector, complex database queries were necessary to extract and prepare the requested information.

Solution

The bank decided to partner with Preyer to tackle this challenge. Preyer supported the bank in aggregating the required data, particularly on the technical side:

• Development and optimization of database queries
• Focus on the complex real estate sector
• Preparation of data according to EBA requirements

Result

The project was a success:

• All three reporting deadlines were met during the period.
• The data quality was good from the start and was progressively improved based on EBA feedback.
• The project was completed with a high-quality submission.

Conclusion

Through close collaboration between the regional bank and Preyer, the EU climate stress test was successfully passed. The bank demonstrated its ability to meet complex regulatory requirements while continuously improving its data quality. This experience not only strengthens the bank’s position in regard to future regulatory challenges but also underscores its commitment to transparency and sustainability in the financial sector.