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ECB pushes ahead with major euro-zone bank review 

June 6, 2014
Juhana Rossi, Market Watch

The European Central Bank is making steady progress in its review of the health of major euro-zone banks, a key step on the path to a closer banking union for the currency bloc bruised by a financial crisis, Daniele Nouy, the head of the new pan-euro area banking supervision authority, said Thursday.

The ECB is conducting a penetrating asset quality review (AQR) of largest euro area banks before it starts supervising them directly, which is scheduled for November this year. The AQR aims at ensuring that all banks' coming under the ECB's supervision have sound balance sheets with no hidden risks.

"Let me emphasize that the actual execution of the AQR is on track," Ms. Nouy said in a speech at a seminar on banking supervision in Helsinki.

Once the comprehensive results for the AQR and for parallel European-wide bank stress tests are published in October, they will reveal capital shortfalls at some banks, Ms. Nouy added. These "banks will have to build up capital buffers, thereby leading to a more resilience in the financial system," she said.

Read more: Market Watch

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