eh, bhè, queste zavorrano
Bloomberg News
ECB Says Euro-Area Bank Stress Test Will Use 5.5% Capital Ratio
By Jeff Black and Stefan Riecher February 03, 2014
ECB Headquarters Stand in Frankfurt
The Frankfurt-based ECB is conducting the health check of lenders before taking over supervision duties for the euro area in November, in the first pillar of a banking union. Photographer: Ralph Orlowski/Bloomberg
The European Central Bank said the euro area’s largest banks will have to show their capital won’t fall below 5.5 percent of their assets in an economic crisis, matching stress-test parameters set by the European Banking Authority.
In an update on its three-part Comprehensive Assessment of 128 euro-area banks, the ECB said in a statement that it will apply the stress-test parameters announced by the London-based EBA on Jan. 31. The ECB said it expects the scenarios for the stress tests to be sent to banks by the EBA at the end of April.
The Frankfurt-based ECB is conducting the health check of lenders before taking over supervision duties for the euro area in November, in the first pillar of a banking union. The EBA, with whom the ECB will conduct a stress test as the final part of the assessment, said that financial institutions across the European Union will have to show that their capital won’t dip below 5.5 percent of their assets in a simulated economic downturn.
“Preparations for the stress test are well under way and we are confident that, in close coordination with the EBA, the outcome will be transparent and credible, boosting the European banking sector,” said ECB Vice President Vitor Constancio in a statement. “We have noted that capital and provisioning measures have been taken since the exercise was announced. Banks are frontloading preparations for the Comprehensive Assessment, and are strengthening their balance sheets, which is a welcome development.”
Non-Performing Loans
The ECB also outlined the definitions for non-performing loans in the second part of the assessment, known as the Asset Quality Review.
The AQR “will use a definition of non-performing exposures that has been agreed with the EBA, which means that every material exposure 90 days past due will be classified as non-performing even if not recognized as defaulted or impaired,” it said in the statement.
VIDEO: Draghi's Own Words on ECB Rate Decision, Banks
Bank holdings of sovereign debt, and their respective maturities, will also be disclosed in full, it said. The central bank is working with national supervisors to finalize the methodology for the AQR and will release full details this quarter, it said.
Quest' ultima affermazione mi sembra no-bbuona per banche nostrane, qualche settimana fa Draghi aveva paventato un criterio di valutazione diverso e meno restrittivo
